Dish DBS, the satellite pay-TV provider under Charlie Ergen’s EchoStar broadcast empire, is preparing to file for Chapter 11 bankruptcy as early as Tuesday, according to people familiar with the matter.
The Englewood, Colorado-based parent company, which also owns Dish TV and Boost Mobile, has been grappling with heavy debt and subscriber losses for years, the people said. EchoStar said in mid-June that Dish DBS would make belated interest payments on several of its bonds due on June 1, after previously stating it wasn’t making those payments because of uncertainty surrounding a federal regulatory review.
At the same time, the company has been locked in a dispute with the Federal Communications Commission over whether it has met its obligations to deploy its wireless spectrum licenses for 5G service. The FCC notified EchoStar on May 9 that it was reviewing the company’s compliance with 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, the company has said. If the commission finds a lack of compliance, EchoStar could lose some prior FCC grants of authority.
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, according to the company.
Law firm White & Case and FTI Consulting have been brought on to advise Dish DBS, the people said.
Representatives for EchoStar and Dish Network did not respond to requests for comment.