HOUSTON, TX — On Tuesday, June 30, 2026, EchoStar Corporation announced that its primary pay-TV satellite broadcasting subsidiary, DISH DBS Corporation, along with certain wireless subsidiaries, has filed for Chapter 11 bankruptcy protection.
Commenced in the United States Bankruptcy Court for the Southern District of Texas under Case No. 26-90627, the prepackaged corporate restructuring aims to restructure approximately $10 billion in subsidiary-level debt liabilities. The plan has secured a Restructuring Support Agreement (RSA) from creditors holding more than 88% of the company’s outstanding secured and unsecured notes.
The financial maneuver was triggered by localized liquidity constraints after unforeseen regulatory and administrative delays stalled the closure of EchoStar’s massive $20.25 billion nationwide wireless spectrum sale to AT&T. Lacking the immediate cash proceeds from that pending transaction, DISH DBS filed the prepackaged restructuring petition to manage the maturation of $2.0 billion in 7.75% senior secured notes due on July 1, 2026.
Separation of Core Operating Units and Escrow Disclosures
The Chapter 11 restructuring is restricted exclusively to the specific DISH DBS Corporation and DISH Wireless corporate shells. To ensure market stability and prevent customer turnover, several parent organizational entities under the broader EchoStar consolidated umbrella have been omitted from the court docket:
- Excluded Active Businesses: Operations for DISH TV, Sling TV, Hughes Satellite Systems Corporation, Boost Mobile, and Gen Mobile are not party to the cases. These units continue to operate as ongoing businesses without changes to vendor payments, employee headcount, or consumer service plans.
- Trade Creditor Motions: Legal counsel has filed an “all-trade” motion requesting expedited judicial approval to continue regular, uninterrupted cash distributions to satellite providers, equipment vendors, retail distributors, and programming networks under existing pre-petition contract agreements.
The filing also facilitates the rapid, orderly liquidation of the legacy DISH Wireless business infrastructure, a wind-down initiated following spectrum asset fire sales in mid-2025. Per regulatory mandates, EchoStar has established a standalone $2.4 billion Federal Communications Commission (FCC) Escrow Trust Fund. Administered independently from the Texas bankruptcy court proceedings, this capital lockbox is dedicated solely to paying out validated third-party contractor claims tied directly to the physical decommissioning and removal of the DISH Wireless 5G tower network.
Balance Sheet Restructuring and Deleveraging Horizon
Under the financial terms outlined in the prepackaged plan, DISH DBS noteholders will receive early repayment allocations without incurring standard prepayment penalties. All outstanding financial claims attached to the matured July 1 notes are scheduled to be fully liquidated in cash as soon as the pending $20.25 billion AT&T spectrum transfer secures final regulatory authorization from the FCC and completes its closing sequence.
The company has retained White & Case LLP as its lead bankruptcy legal counsel—led by Houston partner Charles Koster—while FTI Consulting, Inc. has been tasked with managing financial advisory logistics during the court proceedings. Supported by the overwhelming majority of its primary institutional bondholders, EchoStar executives project that the Southern District of Texas court will fast-track the restructuring schedule, positioning the filing entities to officially exit Chapter 11 reorganization before the conclusion of the third quarter of 2026.
