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EchoStar Seeks Debt Relief Amid FCC Investigation and Looming Default
June 26, 2025
American telecom company Echostar Corp’s CEO Charlie Ergen has asked creditors for a reprieve on the company’s debt. This relief request comes a few days before the 30-day grace period on $326mn coupon payments is set to expire. The company was forced to conserve cash after Federal Communications Commission (FCC) launched an investigation into whether the company was meeting its obligations.
Echostar said that FCC threats have frozen their ability to make decisions. While Ergen’s ask has been met with resistance from creditors, as per sources aware of the matter, they have been simultaneously working with law firm Akin Gump Strauss Hauer & Feld and investment bank Centerview Partners. As per Bloomberg, this issue has gained President Trump’s attention, and he has asked EchoStar and FCC Chairman Brendan Carr to resolve the dispute over the spectrum licenses. Echostar currently has about $25bn of long-term debt and $5bn cash on its balance sheet.
Echostar’s pay-TV unit, Dish Network saw some weakness in its 5.75% 2028s, which dropped by 0.43 points to 88.48, yielding 9.78%.
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