EchoStar confirms Dish DBS bankruptcy
July 1, 2026

By Chris Forrester



EchoStar, as expected, has filed for a chapter 11 prepack restructuring in order to cut debt and speed up restructuring of Dish DBS, its US pay-TV broadcaster.

Dish DBS filed a prepackaged chapter 11 bankruptcy in Houston on June 30th, seeking court approval for a restructuring plan backed by creditors holding more than 88 per cent of its secured and unsecured notes.


The filing aims to slash a debt load of roughly $10 billion (€8.7bn) at the subsidiary level – part of EchoStar’s broader $25 billion in consolidated obligations – while allowing the company to continue normal operations.

EchoStar has arranged to sell spectrum licences to AT&T for $22.65 billion and to SpaceX for $17 billion, a move aimed at addressing FCC pressure over missed 5G network build-out commitments. The combined proceeds are intended to meaningfully reduce EchoStar’s debt mountain, but neither deal has closed.

The bankruptcy move follows years of subscriber erosion, a failed attempted merger with DirecTV, and delays in closing $39.65 billion in spectrum sales to AT&T and SpaceX.

EchoStar says it expects to exit bankruptcy by the end of the third quarter, with no disruption to customers or employees, as it battles what it calls intense and increasing competition across video, broadband, and wireless markets.

“EchoStar has been at the forefront of telecommunications for over 45 years, and these steps will position the business for an even stronger future,” founder Charlie Ergen said in a statement. “We are operating as usual throughout this process, delivering the same high-quality services that our customers expect. I want to thank our team members for their relentless focus and our customers and partners for their continued support.”

Dish DBS has retained White & Case as legal counsel and FTI Consulting as financial advisor to navigate the process. EchoStar anticipates that all classes of claims will vote to accept, or be deemed to have accepted, the plan, positioning the company for what executives describe as long-term success. The restructuring will also facilitate the orderly wind-down of the Dish Wireless business, a process initiated after the sale of spectrum licenses in August and September 2025. Under the plan, all allowed claims against Dish Wireless will be liquidated, with distributions coming from the proceeds of asset sales.