EchoStar Plans Chapter 11 for Hughes Network Systems

EchoStar Corp is preparing to file Chapter 11 bankruptcy for its wholly‑owned subsidiary Hughes Network Systems to avoid a $1.5 billion debt maturity on August 1. Hughes reportedly held only $102 million in cash at the end of March, far short of the obligation.

The action follows EchoStar’s broader balance‑sheet restructuring, which earlier saw its DISH DBS broadcast arm enter a pre‑packaged Chapter 11 and the settlement of $2 billion in senior notes. Hughes, a major satellite broadband provider, has been pressured by subscriber churn and intense competition from low‑Earth‑orbit constellations, prompting a strategic shift toward enterprise and government services.

Law firms White & Case and adviser FTI Consulting are assisting with the bankruptcy filing. In a related transaction, AT&T purchased $23 billion of spectrum from EchoStar, adding mid‑band and low‑band holdings across the United States.