The U.S. Trustee asked a bankruptcy court to appoint an examiner to investigate EchoStar Corp. The probe targets $1.5 billion in transactions with its subsidiary, Hughes Satellite Systems.
Hughes filed for Chapter 11 protection on August 2, 2026. The motion follows bondholder allegations that EchoStar improperly stripped assets from the unit before the filing.
Investigators will review an allegedly uncompetitive lease for the Jupiter 3 satellite. Hughes also paid over $1 billion in dividends to EchoStar in early 2024.
The investigation includes a $196 million tax reimbursement. Creditors allege these transactions weakened Hughes and left it unable to pay its debts. A hearing is scheduled for Wednesday.