Satellite television provider Dish DBS Corp. and its wireless affiliates have initiated a prepackaged Chapter 11 bankruptcy process.
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Dish DBS filed for bankruptcy Tuesday after a deal to sell spectrum to AT&T was held up. The satellite pay-television provider, owned by Colorado-based EchoStar, entered chapter 11 in the U.S. Bankruptcy Court in Houston with a prepackaged plan backed by 88% of its creditors holding Dish DBS bonds, according to a news release.
The EchoStar pay-TV subsidiary said it would repay debt once the $20 billion AT&T spectrum deal closes.
In the closing of the recent trading day, AT&T (T) stood at $20.7, denoting a -5.13% move from the preceding trading day.
EchoStar (ECHO) unit DISH DBS and certain subsidiaries, including DISH Wireless, filed prepackaged C
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The EchoStar unit is preparing for chapter 11 as soon as Tuesday, as it faces regulatory scrutiny over its network build-out.
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