Dish DBS, the satellite pay-TV provider under Charlie Ergen's EchoStar broadcast empire, filed for bankruptcy Tuesday after a deal to sell spectrum to AT&T was held up.
The company entered chapter 11 in the U.S. Bankruptcy Court in Houston with a prepackaged plan backed by 88% of its creditors holding Dish DBS bonds, according to a press release.
Under the plan, Dish intends to reorganize the business and pay down debt once the $20.25 billion of proceeds from the AT&T sale are received. Dish had roughly $2 billion of 7.75% senior secured bonds due on Tuesday.
WSJ Pro Bankruptcy earlier reported Dish DBS would file for bankruptcy as soon as Tuesday.
EchoStar said that the bankruptcy filing follows "unforeseeable regulatory actions" that necessitated the sale of its wireless spectrum licenses and the decommissioning of its Dish Wireless 5G network. The company also has an agreement to sell additional spectrum to SpaceX, though that deal hasn't yet closed either.
A $2.4 billion escrow fund required by the Federal Communications Commission will stay in place to handle network decommissioning claims.
Dish DBS will operate as usual in bankruptcy, a process from which it aims to emerge by the end of the third quarter. Operations for Dish TV and Sling TV will continue without interruption.
EchoStar in March disclosed a restructuring agreement that it said would help reduce debt, resolve pending litigation from its bondholders, and increase flexibility for the company to engage in potential mergers and acquisitions.
White & Case serves as its legal counsel and FTI Consulting is its financial adviser.
Write to Alexander Gladstone at alexander.gladstone@wsj.com
(END) Dow Jones Newswires
Dish DBS had roughly $2 billion of 7.75% senior secured bonds due on Wednesday. "Satellite TV Provider Dish DBS Files for Bankruptcy Following AT&T Deal Snag," at 5:56 p.m. ET, incorrectly said the bonds were due Tuesday.
(END) Dow Jones Newswires
June 30, 2026 18:27 ET (22:27 GMT)
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