EchoStar prepares potential bankruptcy filing amid FCC review, WSJ reports
(Reuters) -EchoStar is considering a Chapter 11 bankruptcy filing as the telecommunications services firm vies to shield its cache of wireless spectrum licenses from the threat of revocation by federal regulators, the Wall Street Journal reported on Friday, citing people familiar with the matter.
The company declined to comment on the report.
Last month, the Federal Communications Commission (FCC) notified EchoStar it was investigating the company's compliance with certain federal obligations to provide 5G service in the U.S., questioning EchoStar's buildout extension and mobile-satellite service.
FCC's actions have severely limited the company's ability to make strategic decisions regarding the growth and investment of its Boost Mobile business, according to a regulatory filing by the company last month.
EchoStar has previously disclosed that it missed roughly $500 million in interest payments, citing uncertainty around the ongoing FCC review.
U.S. satellite TV provider DirecTV terminated its agreement to acquire EchoStar's satellite television business last year, which includes rival Dish TV, over a failed debt-exchange offer.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
India, U.S. trade talks extend into next week, Reuters reports
Trade talks between Indian and U.S. officials have been extended into next week as both sides seek consensus on tariff cuts in the farming and auto sectors, Manoj Kumar of Reuters reports, citing Indian government sources. Negotiators, who had initially aimed to wrap up talks by Friday, will now continue discussions on Monday and Tuesday to resolve outstanding differences, a second Indian official told Reuters. Both sides are aiming to finalize an interim deal before a July 9 deadline, the sources added. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on SPY: Disclaimer & DisclosureReport an Issue Trump pushes for 'full point' rate cut on social media May U.S. nonfarm payrolls rise 139,000, unemployment rate remains 4.2% SPDR S&P 500 ETF Trust: Pivot points Stock Market News Today, 6/6/25 – Futures Up as Market Eyes Jobs Data Over Musk-Trump Feud Trump says OBBB 'one of the greatest bills ever presented to Congress'
Yahoo
an hour ago
- Yahoo
Why EchoStar Corporation (SATS) Soared On Thursday
We recently published a list of . In this article, we are going to take a look at where EchoStar Corporation (NASDAQ:SATS) stands against other best-performing stocks on Thursday. EchoStar rallied for a second day on Thursday, growing 17.47 percent to close at 19.03 apiece, as investors resorted to bargain-hunting while for developments on its ongoing battle with the Federal Communications Commission (FCC). In recent news, FCC announced that it intentionally did not settle worth $326 million of interest payments for one of its senior notes, saying that its ongoing battle with the Federal Communications Commission (FCC) froze its ability to make decisions. A telecom engineer behind the control board in a comms facility. The move sparked concerns among investors about the company's potential filing of bankruptcy protection. In a regulatory filing, EchoStar Corporation (NASDAQ:SATS) said that it received a letter from the FCC on May 9 indicating that the latter was beginning a review of its compliance with certain federal obligations to provide 5G service in the US and raising concerns regarding its buildout extension and mobile-satellite service utilization in the 2GHz band. 'In light of this uncertainty, we have elected not to make an approximately $326 million cash interest payment due on May 30, 2025,' it said, adding that the move was to allow time for the FCC to provide the relief it requested. Overall, SATS ranks 2nd on our list of best-performing stocks on Thursday. While we acknowledge the potential of SATS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Verge
2 hours ago
- The Verge
There are only two commissioners left at the FCC
After the departure of one Republican and one Democratic commissioner on Friday, the Federal Communications Commission is down to two members, falling below the quorum threshold for what's typically a five-person panel. Commissioners Nathan Simington and Geoffrey Starks stepped down at the end of the week. That leaves Republican Chair Brendan Carr and Democratic Commissioner Anna Gomez as the two remaining voting members. President Donald Trump has nominated Republican Senate staffer Olivia Trusty to the commission, but the chamber has yet to vote on her confirmation, which left the agency deadlocked even before these departures. The FCC is in charge of everything from broadband regulations and subsidies funds, to telecommunications mergers enforcement, to spectrum auctions. Without a three-member quorum, some of that work, and the agenda of Trump-aligned Carr, is left in limbo. Starks and Simington both announced the date of their departures earlier this week, though Starks indicated in March that he planned to step down; neither offered specific reasons for their departure. Carr indicated he intends to keep up the pace, writing in a blog post that 'the show must go on.' The FCC isn't the only agency short its typical number of commissioners — earlier this year Trump ordered the firing (in violation of Supreme Court precedent) of the two Democratic commissioners on the Federal Trade Commission. There's a lot that Carr can at least try to do while awaiting a quorum, even without another Republican commissioner to vote on more partisan proposals. Carr has already used so-called delegated authority to let the FCC's various bureaus carry out the agency's work without a vote from the full commission. Verizon's $20 billion deal to buy Frontier was recently approved by the FCC's Wireline Competition Bureau, for example, which Gomez criticized as a 'backroom' deal that should have been brought to a full commission vote. Gomez and Carr can also operate as a two-member board of the commissioners under Rule 0.212, allowing them to do most things they normally would besides issue final rules or actions, according to Public Knowledge senior vice president Harold Feld. That could hold up any final action to roll back a host of regulations through Carr's 'Delete, Delete, Delete' initiative, spurred by a Trump executive order, but allow for new notices of proposed rulemakings or other first steps — so long as they can both agree on them. Even if the commission can likely accomplish most of its day-to-day work, Feld warns that operating without a quorum under confusing legal precedents could be risky. 'It puts a cloud over everything,' he says. It could also cause problems if the Supreme Court issues an awaited ruling on the future of the Universal Service Fund, which helps subsidize communications services for rural and low-income households, and requires changes that would need to be approved by a commission vote. Though a Senate vote on Trusty's confirmation could be scheduled in the coming month or two and officially end the limbo, Feld worries about what could happen if it stretches into hurricane season. After past natural disasters, he says, the FCC has broken red tape to get money for telecommunications networks repairs out faster. 'That potentially might be a problem if the FCC doesn't have a quorum,' he says. 'How much are we handicapped in the event of a weather-related crisis? Will we just decide that the bureaus can act on delegated authority? … [Or] is the commission going to be paralyzed to act in the face of a crisis?'
