EchoStar (ECHO) unit DISH DBS and certain subsidiaries, including DISH Wireless, filed prepackaged Chapter 11 cases to implement a previously announced restructuring agreement designed to repay debt early and complete the transition of the DISH Wireless business.
DISH DBS said Tuesday in a statement that holders of more than 88% of its secured and unsecured notes, who also hold more than $8.8 billion of DISH Wireless debt, support the restructuring plan. The company expects to emerge from Chapter 11 before the end of the Q3.
The filing was triggered by delays in closing the company's planned spectrum sale to AT&T (T), which left DISH DBS without sufficient liquidity to repay $2 billion of 7.75% senior secured notes due Wednesday while meeting ordinary-course obligations, according to the statement.
The notes will be repaid in full in cash after the AT&T transaction closes or when the restructuring plan becomes effective, DISH DBS said.
The filing will not affect DISH TV, Sling TV, or their operations and employees. EchoStar, Hughes Satellite Systems, and the entities that operate the Boost Mobile and Gen Mobile brands are not included in the filings and will see no impact on customers, operations, employees, or financing, according to the statement.
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