EchoStar subsidiary Hughes Network Systems filed for Chapter 11 bankruptcy protection on August 2nd, saying it didn’t have the cash to meet its debt obligations.

EchoStar’s satellite internet subsidiary had just $102 million (€88.5m) in cash against a massive debt maturity. August 1st was the maturity date covering $1.5 billion of borrowings.

The Hughes filing arrives without a pre-negotiated restructuring plan. It also marks the second Chapter 11 filing from the EchoStar family in a matter of weeks, following subsidiary DISH DBS Corporation’s prepackaged bankruptcy on June 30th.

Hughes has steadily lost satellite internet subscribers over the past six years and steadily eroding the revenue base it needed to service its debt. The lost subscribers are seen as having migrated to Starlink. Hughes’s geostationary satellite technology could not compete on performance metrics that consumers increasingly demand.

The bankruptcy filing was made in the Southern District of Texas.

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Categories: Articles, Business, Satellite

Tags: chaper 11, Echostar, Hughes Network