HughesNet files Chapter 11 bankruptcy in Texas

Hughes Satellite Systems Corporation, the satellite internet provider operating as HughesNet, filed for Chapter 11 bankruptcy protection on Sunday, August 2, 2026, in a Texas court. The filing by the EchoStar subsidiary was a voluntary move to reorganize as it faced $1.5 billion in debt payments that came due earlier in the week.

The company stated the bankruptcy will allow it to address its maturing debt, strengthen its capital structure, and accelerate a strategic shift away from the declining residential broadband market. HughesNet plans to refocus its business on enterprise, government, and defense customers. The company said it has sufficient liquidity to fund operations during the restructuring process and will continue serving its existing customers.

The filing underscores the intense competitive pressure from low-Earth orbit satellite internet providers, particularly SpaceX's Starlink service. In a court document, Chief Restructuring Officer Robert del Genio stated that such competition is "structural, not cyclical" and that the company does not expect its subscriber losses to reverse. HughesNet lost 59,000 net broadband subscribers in the second quarter, ending the...