Dish files for Chapter 11 as delayed AT&T spectrum sale stalls repayment

DISH DBS Corporation and certain subsidiaries filed Chapter 11 cases in Houston on June 30 after a delayed $23 billion spectrum sale to AT&T left the company unable to repay $2 billion of 7.75% senior secured notes due July 1. The prepackaged restructuring is backed by holders of more than 88% of Dish DBS’s secured and unsecured notes, including creditors holding more than $8.8 billion of Dish Wireless debt.

Dish TV and Sling TV subscribers are expected to see a steady immediate picture. Operations, brands, customers and employees are not expected to be affected, and Dish TV, Sling TV and other active businesses are expected to keep running normally during the bankruptcy. No service interruption, price change or abrupt shutdown is tied to the filing itself.

The bankruptcy gives Dish DBS room to pay debt early, avoid penalties and complete the orderly transition of Dish Wireless’s facilities-based 5G network. Dish targeted emergence from Chapter 11 before the end of the third quarter of 2026. The AT&T transaction had not closed because of unforeseen delays, leaving it without the liquidity needed to cover the July 1 notes.

EchoStar agreed in August 2025 to sell about 50 megahertz of nationwide spectrum to AT&T for $23 billion, and it also agreed to sell spectrum to SpaceX. Together, the two deals total about $42 billion. The Federal Communications Commission approved the sales in May and required EchoStar to establish a $2.4 billion escrow fund for qualifying claims tied to decommissioning Dish Wireless’s 5G network once the AT&T transaction closes. Dish Wireless is expected to wind down its network and dispose of remaining assets in an orderly and expedited manner. Claims tied to that decommissioning may recover from the FCC escrow fund. Charlie Ergen, EchoStar’s co-founder and chairman, said the company has been in telecommunications for more than 45 years.