EchoStar Bondholders Hire Law Firm amid Default Risks

EchoStar's bondholders have engaged the law firm Akin Gump Strauss Hauer & Feld amid growing concerns over the company’s financial stability, following decisions to skip significant interest payments on bonds tied to its spectrum business and Dish DBS operations. These skipped payments triggered 30-day grace periods, raising the risk of default as the company faces investigations by the Federal Communications Commission (FCC) into its Boost Mobile network build and compliance with 5G build milestones. The FCC is also reviewing whether EchoStar intends to use its mobile satellite services in the 2GHz band, with the regulator's scrutiny freezing EchoStar's ability to invest further capital due to fears the FCC might revoke its licenses. EchoStar billionaire Charlie Ergen has attempted multiple times to meet with FCC Chair Brendan Carr to discuss the company's progress and network upgrades but has not secured a meeting. Analysts suggest that a potential bankruptcy filing could serve as a strategy for EchoStar to delay FCC actions related to revoking its wireless spectrum licenses. Overall, the uncertainty stemming from federal probes and missed bond payments has placed EchoStar and its bondholders in a precarious financial position with legal preparations underway for possible bankruptcy.