EchoStar Corporation announced it has elected not to make approximately $183 million in cash interest payments that were due on June 1, 2026, for notes issued by its subsidiary, DISH DBS Corporation (DDBS). The company is deferring the payments to preserve liquidity while awaiting closing proceeds from its pending transactions with AT&T.
Key Details
- Missed Payments: The company did not pay ~$72.2M on 5.25% notes due 2026, ~$71.9M on 5.75% notes due 2028, and ~$38.4M on 5.125% notes due 2029.
- Default and Grace Period: The non-payment constitutes a default. EchoStar has a 30-day grace period to make the payments before it becomes an "Event of Default."
- Reason for Deferral: The decision was made to conserve cash pending the receipt of $20.25 billion in net proceeds from the AT&T transactions, which have received regulatory approvals but are not yet final.