Heavy Debt Forces DISH Wireless to File Bankruptcy

DISH DBS Corporation, EchoStar’s satellite pay-TV unit, and several subsidiaries including DISH Wireless have filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division.

The company, which operates the DISH Network and Sling TV services, is pursuing a prepackaged restructuring plan backed by more than 88% of its creditors. It expects to emerge from bankruptcy by the end of the third quarter of 2026.

The filing, announced Tuesday, aims to facilitate early repayment of DISH DBS debt, resolve litigation with creditors, and complete the wind-down of the DISH Wireless business following delays in a major spectrum sale to AT&T. Operations, customers, brands, and employees of EchoStar’s businesses — including Boost Mobile and Gen Mobile — are expected to continue unaffected. The Chapter 11 cases do not include parent EchoStar Corporation or certain other units.

The prepackaged plan implements a restructuring support agreement signed in March 2026 with holders of more than $8.8 billion in debt. It addresses impending debt maturities, including roughly $2 billion in senior secured notes due July 1, and provides greater financial flexibility amid years of subscriber losses in the traditional pay-TV business.

EchoStar has been grappling with a heavy debt load of approximately $25 billion across the company, with nearly $10 billion tied to the DISH DBS subsidiary. The bankruptcy filing became necessary after “unforeseen delays” prevented the closing of the AT&T spectrum transaction, which was intended to help deleverage the balance sheet.

This move follows broader challenges in the satellite TV sector, including cord-cutting and failed merger attempts, as the company shifts focus away from its wireless operations. With strong creditor support, the case is expected to move quickly through court approval.