ECHOSTAR prepares potential bankruptcy filings in FCC review, WSJ report

(Reuters) – echostar is considering a Chapter 11 bankruptcy filing to protect caches of wireless spectrum licenses from the threat of expiration by federal regulators, the Wall Street Journal quoted people familiar with the issue on Friday.

The company declined to comment on the report.

Last month, the Federal Communications Commission (FCC) notified ECHOSTAR that it was investigating our compliance with certain federal obligations to provide 5G services in the United States, raising questions about Echostar’s build-out extension and mobile satellite services.

According to regulatory filings last month, the FCC’s actions severely limit the company’s ability to make strategic decisions regarding the growth of its mobile business and investment.

Echostar previously revealed that it had missed about $500 million in interest, citing uncertainty about the ongoing FCC review.

US satellite television provider DirectV ended its agreement last year to acquire Echostar’s satellite television business, including rival Dish TV, over a failed debt exchange.

(Reporting by Harsita Mary Barghese and Devika Naia of Bengaluru, edited by Alan Barona)