Dish enters Chapter 11 after delayed spectrum sales
EchoStar says Dish TV and Sling TV will keep operating as the company addresses $2 billion in debt due July 1.
By Maya Lindqvist · Senior Technology Correspondent
2 min read
Dish has filed for Chapter 11 bankruptcy protection after delayed spectrum sales left the EchoStar-owned company without enough cash to repay $2 billion in debt due July 1, according to EchoStar. The company says Dish TV, Sling TV and other affected brands will keep operating during the case.
The filing covers Dish DBS Corporation and subsidiaries, Reuters reported. EchoStar said in a press release that the process is intended to let Dish continue winding down its wireless operations while it works through the delay in selling 5G spectrum.
EchoStar said the company plans to exit Chapter 11 by the end of the third quarter of 2026. The company described the filing as a prepackaged bankruptcy process, a structure typically used when a company has lined up support for a restructuring plan before going to court.
Dish said the immediate problem stems from “unforeseen delays” in the planned sale of $23 billion worth of 5G spectrum to AT&T, according to EchoStar’s announcement. Because that transaction has not closed, Dish said it did not have “sufficient liquidity” to meet the July 1 debt payment.
The bankruptcy does not include Boost Mobile or Gen Mobile, according to EchoStar. The company said both mobile brands will continue to operate outside the Chapter 11 process.
Delayed wireless exit drives the filing
Dish had previously abandoned its attempt to become the fourth major U.S. wireless carrier, The Verge reported. The company instead moved to sell pieces of its spectrum holdings to AT&T and SpaceX.
Neither the AT&T nor SpaceX transaction has closed, The Wall Street Journal reported. EchoStar’s statement ties the bankruptcy filing to the delay in completing the AT&T spectrum sale.
EchoStar CEO Charlie Ergen said in the company’s release that the business would keep providing service during the restructuring. “We are operating as usual throughout this process, delivering the same high-quality services that our customers expect,” Ergen said.
The case leaves Dish trying to separate its pay-TV and streaming businesses from the financial strain tied to its wireless retreat. EchoStar’s stated plan is to keep the consumer-facing services running while the company uses bankruptcy court to address the debt coming due and complete its broader exit from wireless operations.
This story draws on original reporting from The Verge.