DISH DBS launches prepackaged Chapter 11 plan

DISH DBS Corporation and certain subsidiaries, including DISH Wireless, commenced joint prepackaged Chapter 11 cases on June 30, 2026 in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. The company described the move as a court-supervised process to implement a previously negotiated restructuring support agreement and to address an immediate liquidity shortfall. The liquidity pressure arose from unforeseen delays in closing a previously announced sale of wireless spectrum licenses to AT&T (T).

The chapter 11 filing is structured as a prepackaged case, meaning that key terms of the restructuring were negotiated with major creditors before the court process began. DISH DBS said this approach is expected to enable a faster progression through bankruptcy and is targeting emergence before the end of the third quarter of 2026.

The restructuring support agreement is backed by holders of more than 88% of DISH DBS’s secured and unsecured notes. These creditors also hold more than $8.8 billion of DISH Wireless debt, giving them a substantial stake across the capital structure. Their support underpins the prepackaged plan that aims to reduce the company’s debt load while resolving near-term obligations.

A key element of the plan is addressing the $2.0 billion of 7.75% senior secured notes due July 1, 2026. The plan is structured to pay these notes in full in cash. Funding is expected to come via repayment of an intercompany Tranche B loan, which in turn will be repaid using net proceeds of approximately $20.25 billion anticipated from the AT&T (T) spectrum-sale transaction.

DISH DBS cited unforeseen delays in closing the spectrum-sale transaction with AT&T as the trigger for the chapter 11 filings. The company said the delay left it without sufficient liquidity to repay the July 1, 2026 notes while maintaining ordinary-course operations. By using chapter 11, DISH DBS seeks to bridge this timing gap, align its capital structure with the expected proceeds and provide clarity on treatment of its debt.

The reliance on the AT&T transaction is embedded in the structure of the intercompany Tranche B loan, which is expected to be repaid from the net spectrum-sale proceeds. The repayment of that loan is central to the plan to satisfy the July 2026 senior secured notes in full.

The restructuring contemplates completing the transition and wind-down of DISH Wireless’s remaining assets. As part of this process, an FCC-ordered escrow fund of $2.4 billion will be used to address qualified claims related to the decommissioning of the DISH Wireless 5G network. Claims under $100,000 are to be prioritized from this escrow, providing a framework for resolving smaller obligations first.

The plan’s treatment of DISH Wireless and the associated escrow is intended to manage liabilities arising from the network shutdown while the broader DISH DBS restructuring proceeds. This allows the company to delineate between legacy wireless obligations and its continuing operational businesses.

DISH DBS stated that the chapter 11 cases do not include certain EchoStar units and will not affect the day-to-day operations of key consumer-facing brands. DISH TV, Sling TV, Boost Mobile, Gen Mobile, EchoStar Corporation and Hughes Satellite Systems are expected to continue operating in the ordinary course during the restructuring.

By excluding these units from the filings, the company aims to keep television, streaming and mobile services uninterrupted for customers while financial restructuring proceeds at the DISH DBS and DISH Wireless entities. The company’s timeline targets exiting chapter 11 before the end of the third quarter of 2026 under the prepackaged plan.