EchoStar subsidiaries Dish DBS file for Chapter 11

Two subsidiaries of EchoStar Corporation, including its satellite television unit Dish DBS, have filed for Chapter 11 bankruptcy protection in a prepackaged restructuring aimed at reducing a massive debt burden. The filings, made in the U.S. Bankruptcy Court for the Southern District of Texas, advance a plan to repay debt early following the sale of wireless spectrum assets.

The company said the move does not affect the operations of its DISH TV and Sling TV services, their employees, or its Boost Mobile, Gen Mobile, and Hughes Satellite Systems businesses. EchoStar cofounder and chairman Charlie Ergen stated the steps will position the business for a stronger future and that services are operating as usual.

The bankruptcy filings were prompted by an inability to cover approximately $2 billion in debt payments due on July 1, a situation the company attributed to delays in closing a major spectrum sale to AT&T. The restructuring plan, which has already secured support from creditors representing most of Dish DBS's notes and more than $8.8 billion of Dish Wireless debt, is designed to enable early debt repayment without penalty. The company aims to emerge from bankruptcy before...