EchoStar Cites Spectrum Uncertainty as It Threatens Debt Payment Default
Citing the uncertainty around its spectrum rights because of FCC issues, EchoStar said Friday it had opted to forgo making a $326 million cash interest payment due that day on corporate debt that matures in 2029. In an SEC filing,…
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EchoStar said the nonpayment counts as a default on the 2029 notes, but it pointed out that it has a 30-day grace period to make the payment, giving the FCC time to provide the relief the company requested. If the commission grants EchoStar relief, "we may confidently continue investing in our network buildout and expansion of our Boost business" and mobile satellite service offerings. The company this week asked the FCC to deny VTel Wireless' petition for reconsideration on an extension of EchoStar's 5G network buildout deadlines and to confirm that it has satisfied the 2024 commitments it made for that extension (see 2505280002).