Satellite Pay-TV Provider Dish DBS Prepares for Bankruptcy Filing
The EchoStar unit is preparing for chapter 11 as soon as Tuesday, as it faces regulatory scrutiny over its network build-out
- Dish DBS, a satellite pay-TV provider, is preparing to file for chapter 11 bankruptcy as soon as Tuesday.
- The company has struggled with heavy debt and subscriber losses, and faces a battle with federal regulators.
- The FCC is reviewing Dish DBS compliance with 5G service obligations, which could lead to a loss of prior grants.
Dish DBS, the satellite pay-TV provider under Charlie Ergen’s EchoStar broadcast empire, is preparing to file for chapter 11 bankruptcy as soon as Tuesday, according to people familiar with the matter.
The Englewood, Colo., parent, also owner of Dish TV and Boost Mobile, has been struggling with heavy debt and subscriber losses for years. At the same time, the company has been locked in a battle with federal regulators over whether it has met its obligations to deploy its valuable wireless spectrum licenses.
Law firm White & Case and FTI Consulting have been brought on to advise Dish DBS, the people said.
EchoStar said in mid-June that DBS would make belated interest payments on several of its bonds due on June 1. EchoStar had previously said it wasn’t making these payments because of uncertainty surrounding a review by the Federal Communications Commission. On May 9, the FCC notified the company it was reviewing its compliance with certain federal obligations to provide 5G service in the U.S.
The regulator has raised questions about EchoStar’s build-out extension and mobile-satellite service utilization in the 2 GHz band. If the commission finds a lack of compliance, the company could lose some prior FCC grants of authority, EchoStar has said.
In March, EchoStar announced an agreement with holders of more than 82% of Dish DBS debt for a deleveraging plan that might involve a bankruptcy filing.
Representatives for EchoStar and Dish Network didn’t immediately respond to requests for comment.