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All those editors who told us to leave the Wall street angle for the finance pubs? They were all very wrong.
Bankruptcy brings Dish closer to exiting 5G wireless, stiffing tower companies, and making that long awaited trip to the alter with DirecTV
Charlie Ergen and EchoStar’s long, torturous exit from the 5G wireless business — and perhaps, also a long-awaited trip to the alter with DirecTV — took another step forward last week with a “voluntary, prepackaged Chapter 11 bankruptcy filing” in Houston by the company’s Dish DBS unit.
Ten months ago, under pressure from the FCC, Dish DBS sold $23 billion worth of wireless spectrum to AT&T, the proceeds of which were supposed to help settle $25 billion of debt.
But because of what it called “unforeseen circumstances,” proceeds from that AT&T sale have yet to hit EchoStar’s bank account. And with Dish’s dwindling pay TV business spinning off less revenue every day, Dish didn’t have the liquidity to make a July 1 payment on a 7.75% senior secured note.
In addition to paying that bill, here’s what the bankruptcy does … and may do.
At his favorite restaurant, EchoStar Chairman Charlie Ergen can’t just negotiate 85% off the bill, or simply walk away.
