Debt Call, Dish Sibling Hughes OKs Bankruptcy Filing

Hughes Network Systems, the satellite TV and broadband provider owned by EchoStar, has filed for voluntary Chapter 11 bankruptcy in Texas federal court. The move follows an inability to repay about $1.5 billion owed to debtholders by an August 1 deadline. According to the filing, the company lacks the cash on hand and also has no access to additional lending opportunities to meet the due date. Hughes reported $102 million in cash at the end of the first quarter. For EchoStar, headquartered in Montgomery County, Md., the company has enough liquidity “to keep the lights on,” at least for now, as it continues broadband service across the Americas—especially in rural areas.