EchoStar and Dish are making payments today on scheduled interest originally due on May 30, 2025 for 2029 Spectrum Notes, and scheduled interest payments originally due on June 2, 2025 on DBS Notes. These payments are within the 30-day grace period and are being made to avoid an Event of Default.
In a filing Friday morning, the companies say they will skip $77.5 million and $36.875 million interest payments that are due on July 1, for 2026 and 2028 senior notes.
The filing says: Because reaching an acceptable resolution of the FCC inquiries is not assured, the Company must continue to evaluate the deployment of its resources. In light of this continued uncertainty, DDBS has elected not to make a $77.5 million cash interest payment due on July 1, 2025 with respect to the 7.75% senior notes due 2026 (the “2026 Notes”) and a $36.875 million cash interest payment due on July 1, 2025 with respect to the 7.375% senior notes due 2028 (the “2028 Notes” and, together with the 2026 Notes, the “Senior Notes”).
A 30-day grace period will again be invoked.
EchoStar is reportedly considering a Chapter 11 bankruptcy filing to protect its wireless spectrum licenses from being revoked as a result of FCC investigations. The company says the missed payments are a direct result of the FCC review, stating the commission’s threats had “effectively frozen our ability to make decisions” about strategic investments.