EchoStar announced that its Hughes business filed for Chapter 11 bankruptcy protection after missing a $1.5 billion bond maturity, while the parent company increased its share-repurchase authorization to $5 billion. Chairman Charlie Ergen said the bankruptcy proceedings are limited to Hughes entities and will not affect EchoStar Corporation, its other non-Hughes subsidiaries, or Hughes international entities. The company has approximately $14 billion to $15 billion in cash after reserving $2.4 billion for Boost-related network shutdown obligations, and it owns 261.8 million SpaceX shares. Boost Mobile remained slightly cash-flow positive but lost subscribers, and EchoStar continues to explore partnerships, mergers, and acquisitions. The company is also awaiting an FCC decision on selling certain spectrum assets.
EchoStar CorporationIncreased buyback authorization to $5 billion and has substantial cash reserves.
Hughes filed for Chapter 11 after missing bond maturity.
