EchoStar to put Hughes Network into bankruptcy
July 29, 2026
Charlie Ergen, co-founder of EchoStar, has reportedly decided to place its wholly-owned subsidiary Hughes Network Systems into Chapter 11 bankruptcy.
The WSJ is amongst other reports that the aim is to avoid paying a $1.5 billion (€1.3bn) debt maturity obligation due on August 1st. As of March 31st, Hughes had just $102 million in cash on hand, according to an earnings report published in May.
Hughes Network is expected to file for bankruptcy in days without a prenegotiated plan in place to address its debts, a person familiar with the situation said. Law firm White & Case and financial adviser FTI Consulting are advising the company as it prepares for Chapter 11, stated the WSJ.
Hughes Network paid stock dividends to EchoStar in the first quarter of 2024 totaling nearly $1.03 billion, securities filings show.
EchoStar itself announced on July 28th that it had paid debts owed by its Dish DBS business including the full repayment and satisfaction of all outstanding obligations under its 7.75 per cent Senior Notes due July 1st. The total payment made on July 28th was comprised of $2,000,000,000 in aggregate principal amount along with accrued and unpaid interest through the date of repayment.
Separately, giant telco AT&T has paid $23 billion on July 28th to EchoStar for the agreed transfer of spectrum licences from EchoStar to AT&T. The acquired spectrum covers virtually every market across the US, adding approximately 30 MHz of nationwide 3.45 GHz mid-band spectrum and approximately 20 MHz of nationwide 600 MHz low-band spectrum to AT&T’s portfolio.
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