Dish DBS files prepackaged Chapter 11 after AT&T spectrum sale delay

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Summary · why it matters

Dish DBS Corporation and certain subsidiaries including Dish Wireless filed a prepackaged Chapter 11 in Houston on June 30 to implement a restructuring support agreement after unforeseen delays in closing its $23 billion spectrum license sale to AT&T. The company, a subsidiary of EchoStar Corp., said it lacks sufficient liquidity to repay $2.75 billion of 5.25% senior secured notes due July 1, 2026 while meeting ordinary obligations. Holders of more than 88% of its secured and unsecured notes have agreed to support the reorganization plan, which targets emergence from Chapter 11 before the end of the third quarter of 2026. The plan will use AT&T transaction proceeds to repay the 2026 secured and unsecured notes in full in cash, amend the 2028 secured notes for quarterly redemption, and repay 2028 and 2029 unsecured notes with amended notes and cash interest, with an estimated 100% recovery for funded debt claims. A separate $2.4 billion fund required by the FCC will address claims from the Dish Wireless 5G network shutdown.

Impact on assets 2

Cloud & Digital Infrastructure▼ · 2 stocks
EchoStar Corporation
ECHO
▼ NegativeCapitalrelevance

EchoStar subsidiary Dish DBS files Chapter 11 due to liquidity issues from delayed AT&T spectrum sale.

AT&T Inc.
T
± MixedCapitalrelevance

AT&T is the buyer of Dish's spectrum licenses, but the delay in closing the sale is mentioned as a cause of Dish's filing, not as a direct impact on AT&T.

Off-coverage companies 1

Dish DBS CorporationPrivate▼ Negative
Capitalrelevance

Dish DBS files prepackaged Chapter 11 due to insufficient liquidity to repay notes after delayed AT&T spectrum sale.

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