Hughes Network Systems Prepares Chapter 11 Filing Over $1.5 Billion Note as Subscribers Fall to 681,000
Updated
Updated · Yahoo Finance · Jul 31
Hughes Network Systems Prepares Chapter 11 Filing Over $1.5 Billion Note as Subscribers Fall to 681,000
3 articles · Updated · Yahoo Finance · Jul 31
Summary
$1.5 billion in debt due Aug. 1 is pushing Hughes Network Systems toward a Chapter 11 filing in the coming days, with the company reportedly preparing to enter bankruptcy without a pre-negotiated plan.
Charlie Ergen has decided to put the EchoStar unit into bankruptcy rather than pay the note, after Hughes ended March with just $102 million in cash.
681,000 broadband subscribers remained as of March 31, down from 1.56 million at the end of 2020, as losses accelerated after Starlink's launch intensified competition in satellite broadband.
Hughes has been a key provider for rural and underserved U.S. users, but geostationary operators are losing ground as lower-cost low-Earth-orbit networks gain share and investment shifts toward multi-orbit systems.