Dish Network scraps debt plan
February 1, 2024
By Chris Forrester
EchoStar, which now includes most of the former Dish Network assets, has scrapped one of its controversial debt swap proposals. Dish, says EchoStar, “in its sole discretion” had decided to abandon the plan.
EchoStar has confirmed that its Dish subsidiary has ended an offer announced two weeks ago to swap more than $6 billion (€5.5bn) of its unsecured notes maturing between this year and 2029.
The initial proposal had offered new secured debt of up to $4 billion maturing in 2030 and beyond, with the new securities backed by assets including Dish’s more than three million subscribers.
The scheme was highly controversial and prompted a slew of legal complaints and threats of action amid complaints that the move was not legal.
However, a separate Dish debt exchange announced on January 12th is still active. That deal offered to swap nearly $5 billion of its convertible notes to new debt that will mature in 2029 and 2030. These new notes would be issued under an unrestricted subsidiary (EchoStar Wireless Holdings) and secured by certain spectrum licences moved to that entity.