(Reuters) -EchoStar is considering a Chapter 11 bankruptcy filing as the telecommunications services firm vies to shield its cache of wireless spectrum licenses from the threat of revocation by federal regulators, the Wall Street Journal reported on Friday, citing people familiar with the matter. The company declined to comment on the report. Last month, the […]
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EchoStar prepares potential bankruptcy filing amid FCC review, WSJ reports
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(Reuters) -EchoStar is considering a Chapter 11 bankruptcy filing as the telecommunications services firm vies to shield its cache of wireless spectrum licenses from the threat of revocation by federal regulators, the Wall Street Journal reported on Friday, citing people familiar with the matter.
The company declined to comment on the report.
Last month, the Federal Communications Commission (FCC) notified EchoStar it was investigating the company’s compliance with certain federal obligations to provide 5G service in the U.S., questioning EchoStar’s buildout extension and mobile-satellite service.
FCC’s actions have severely limited the company’s ability to make strategic decisions regarding the growth and investment of its Boost Mobile business, according to a regulatory filing by the company last month.
EchoStar has previously disclosed that it missed roughly $500 million in interest payments, citing uncertainty around the ongoing FCC review.
U.S. satellite TV provider DirecTV terminated its agreement to acquire EchoStar’s satellite television business last year, which includes rival Dish TV, over a failed debt-exchange offer.
(Reporting by Harshita Mary Varghese and Devika Nair in Bengaluru; Editing by Alan Barona)