Filing Alert: DISH DBS Chapter 11

Update (July 1, 2026): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of DISH DBS Corporation.

DISH DBS Corporation and its debtor affiliates⁽¹⁾, an Englewood, CO-based provider of direct broadcast satellite television and pay-TV services, filed for Chapter 11 protection on Jun. 30 in the U.S. Bankruptcy Court for the Southern District of Texas.

The prepackaged filing advances two linked objectives spanning the Debtors' two operating segments. For the DBS Debtors (Pay-TV), the cases implement a Restructuring Support Agreement (RSA) effecting a comprehensive balance-sheet restructuring; for the DISH Wireless Debtors (the legacy 5G Network within the Company's "Other" segment), they establish a centralized, court-supervised process to sell substantially all assets under section 363 and adjudicate a wave of prepetition network-related claims.

The DBS Debtors attribute their distress to a structural decline in the Pay-TV business—industry-wide cord-cutting, rising programming costs, and streaming competition—that has eroded the subscriber base by roughly 7.3 million since its 2014 peak of more than 14 million, against a fixed debt-service burden on approximately $9.75 billion of funded debt ($5.25 billion secured, $4.5 billion unsecured). Prepetition efforts to address the mismatch failed: the September 2024 Equity Purchase Agreement with DirecTV, which would have reduced consolidated Pay-TV debt by an estimated $11.7 billion, was terminated on November 22, 2024 after DBS Noteholders rejected the companion debt-exchange offer. As of the Petition Date, DBS lacks sufficient liquidity to both repay the $2.0 billion 7.750% Senior Notes maturing July 1, 2026 and satisfy ordinary-course obligations, as the anticipated AT&T closing—the intended source of repayment—remains delayed pending regulatory approval.

The DISH Wireless Debtors' distress originates in an FCC sell-or-forfeit directive. Despite certified compliance with its buildout milestones—achieved through more than $46 billion of investment (over $30 billion in spectrum, excluding $10 billion of capitalized interest, and more than $16 billion in infrastructure)—the Company faced a May 2025 FCC investigation that threatened hundreds of licenses, prompting EchoStar and certain non-Debtor affiliates to sell a material portion of their spectrum to AT&T (approximately $23 billion, subject to an $18.6 billion floor) and SpaceX (up to approximately $19 billion). Because those sales conveyed the very licenses needed to operate the 5G Network—licenses the DISH Wireless Debtors never owned and from which they are entitled to no proceeds—DWLLC discontinued deployment and began decommissioning the network. The transition triggered widespread force-majeure disputes under its tower leases and vendor contracts, generating more than 170 lawsuits nationwide with aggregate asserted damages exceeding $6 billion, well beyond DWLLC's ability to pay.

Executed March 19, 2026 with holders of 82% of the DBS Notes—support since rising above 88%—the RSA deleverages the DBS Debtors from approximately $9.75 billion to $5.0 billion of funded debt and provided for dismissal of the prepetition Bondholder Lawsuit on March 20, 2026. Under the Plan, the DBS Notes will be exchanged for amended notes or repaid at par—with the $2.0 billion 2026 Senior Notes paid in cash—without any make-whole, premium, or penalty. The DBS Debtors report sufficient cash, cash equivalents, and accounts receivable to fund operations and restructuring expenses and do not anticipate the need for debtor-in-possession financing.

For the DISH Wireless Debtors, the Plan contemplates a section 363 sale of substantially all assets with EchoStar as Stalking Horse Bidder under an APA negotiated and authorized by the DWLLC Special Committee, on a proposed timeline of an August 10, 2026 bid deadline, an August 12, 2026 auction, and a combined confirmation and sale hearing on August 17, 2026. Although the DISH Wireless Debtors negotiated a junior, multi-draw DIP facility of up to $85 million from EchoStar, they hold sufficient liquidity—including approximately $56.0 million of unencumbered cash from a released restricted account—and are not seeking emergency DIP approval. Resolution of the 5G network claims is separately backstopped by the FCC Trust, funded by a $2.4 billion EchoStar contribution and established June 26, 2026 with The Bank of New York Mellon as trustee, which will satisfy qualifying "Covered Claims" through a priority waterfall.

DISH DBS Corporation reports $1 billion to $10 billion in assets and $10 billion to $50 billion in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-90627.

⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.

Chapter 11 Debtors

Top Unsecured Claims

Key Parties

Counsel:

• Charles R. Koster
  White & Case LLP
  Email: charles.koster@whitecase.com

Financial Advisor:

• FTI Consulting, Inc.

Investment Banker:

• FTI Capital Advisors, LLC

Special Regulatory Counsel:

• Steptoe LLP

Independent Counsel to the Dish Wireless Special Committee:

• Dentons US LLP

Signatories:

• John Swieringa – Authorized Signatory

Claims Agent:

• Epiq Corporate Restructuring, LLC

Equity Security Holders:

• DISH Orbital Corporation – 100% Equity Interest

Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.

Stay informed on every Chapter 11 bankruptcy case with liabilities exceeding $10 million. Subscribe for free to have our coverage delivered directly to your inbox, and explore our full archive of past summaries.

Explore Bondoro Insights for live case dockets and comprehensive coverage of material filings from petition to plan confirmation.