EchoStar Skips Another Multi-Million Dollar Interest Payment
Missed payments total over $500 million
WASHINGTON, June 3, 2025 – EchoStar skipped a $183 million interest payment on various Dish DBS Corporation notes, citing uncertainty around an FCC review. This marked the second time in five days that the Englewood, Colo.- based telecommunications company missed a payment, and raised fears of a potential bankruptcy for the telecommunications giant.
EchoStar, which owns Dish Network and Boost Mobile, reached a deal with the FCC in September 2024 that allowed it to delay deployment of its 5G network in exchange for public interest commitments, such as a nationwide low-cost plan. That deal was criticized by FCC Chairman Brendan Carr, who accused EchoStar of “negotiating behind closed doors during the previous Administration” and ordered a review of the deal in May.
Citing this review, EchoStar elected to miss two interest payments on its notes. The first, a $326 million payment on senior spectrum-secured notes was due Friday. The second, $183 million, payment due Monday was for interest accumulated on various Dish DBS Corporation notes. According to a Form 8-K filed with the Securities and Exchange Commission on Monday, EchoStar decided not to make its $183 million payment “to allow time for the FCC to provide the relief requested in [a prior] FCC filing.”
EchoStar now has a 30-day grace period to make its interest payments. If it does not, it will enter an Event of Default, and could face voluntary Chapter 11 bankruptcy. EchoStar acknowledged as much in its filing, writing that it hoped the FCC would grant it relief “prior to the expiration of the 30-day grace period.”
A looming potential bankruptcy proceeding may force EchoStar back to the negotiation table with the FCC.
New Street Research policy advisor Blair Levin argued that Carr’s objective is to force such a negotiation by “put[ting] a cloud over the value of [EchoStar’s] assets,” and eventually forcing a sale of its Spectrum. Rival telecommunications company SpaceX has argued that EchoStar does not fully utilize its Spectrum, and has urged the FCC to auction it off.
