EchoStar's satellite pay-TV arm Dish DBS, together with its wireless subsidiaries, has initiated Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, filing a prepackaged restructuring plan intended to address imminent debt maturities and to enable an orderly wind-down of Dish Wireless's 5G network operations.
The filing was driven by the company's stated inability to repay $2 billion in 7.75% senior secured notes that come due on July 1. Dish DBS said the business had been relying on proceeds from a spectrum-sale transaction announced in August 2025 with AT&T - a deal under which EchoStar agreed to sell roughly 50 megahertz of nationwide spectrum for $23 billion. Delays in closing that transaction left the units without sufficient liquidity to satisfy the near-term obligation, the company said.
Under the terms of the prepackaged plan, all amounts due on the July 1 notes will be paid in full in cash promptly after the AT&T transaction closes or upon the plan's effective date. Dish DBS noted that holders representing more than 88% of Dish's outstanding credit have consented to the restructuring; this group includes creditors holding in excess of $8.8 billion of Dish Wireless debt. The company said those consents should allow the Chapter 11 process to proceed on an expedited timetable and support an anticipated exit by the third quarter.
EchoStar identified law firm White & Case and FTI Consulting as advisors on the restructuring. Management framed the filing as a step to stabilize the capital structure while maintaining ongoing operations. In a prepared statement, Charlie Ergen, co-founder and chairman of EchoStar, said: "EchoStar has been at the forefront of telecommunications for over 45 years, and these steps will position the business for an even stronger future. We are operating as usual throughout this process, delivering the same high-quality services that our customers expect."
The Chapter 11 action covers both the satellite pay-TV business and affiliated wireless entities and explicitly references the need to address the liquidity shortfall created by the delayed spectrum-sale closing. The filing seeks court approval of the prepackaged plan that creditor consents have already substantially backed, rather than a fully contested restructuring.
As described by the company, the restructuring is narrowly focused: it is intended to resolve the immediate funding gap tied to the July 1 notes and provide a mechanism for payment contingent on the AT&T transaction or the plan's effectiveness. Beyond those mechanics, the filing also supports a planned wind-down of 5G network operations at Dish Wireless in light of the changed timeline for spectrum monetization.
How quickly the process moves will depend on the timing of the AT&T closing and on the bankruptcy court's review, but the company has signaled an expectation of emerging from Chapter 11 by the third quarter if consents and the spectrum sale proceed as described.