DISH DBS, the satellite TV unit of Englewood-based broadcast giant Echostar, is restructuring unpaid debt.
DISH filed for Chapter 11 protection in the U.S. Bankruptcy Court in Houston on Tuesday. The bankruptcy, which has the backing of the majority of the company’s creditors, allows DISH to renegotiate its debt terms and stay in business.
Operations at DISH won’t be affected, the company said in a statement.
“EchoStar has been at the forefront of telecommunications for over 45 years, and these steps will position the business for an even stronger future,” Charlie Ergen, Echostar co-founder and Chairman, said in the statement. “We are operating as usual throughout this process, delivering the same high-quality services that our customers expect. “
The restructuring plan is still subject to court approval. DISH anticipates emerging from bankruptcy later this year, the statement said.
“The plan will enable Dish DBS to pay off debt early with no penalty, allow the company to focus on ongoing operations and provide the company more strategic flexibility for future initiatives,” according to the statement. “The filing will … will not impact DISH TV, Sling TV, or their active operations and employees.”
AT&T agreed to buy Echostar’s wireless spectrum licenses for $23 billion last year. But the deal hasn’t closed. Echostar pointed to the deal’s delay as a reason for DISH’s financial troubles.
