Hughes Satellite Systems Corporation today announced that it and certain of its U.S. subsidiaries, including Hughes Network Systems, LLC, have filed voluntary chapter 11 petitions in the Bankruptcy Court for the Southern District of Texas, Houston Division to facilitate a financial and operational reorganization.
This reorganization will allow the company to address its maturing secured and unsecured debt, strengthen its capital structure, and accelerate its ongoing transformation into an enterprise, government, and defense-focused business—all while continuing to serve its customers.
The company intends to use the tools of a chapter 11 reorganization to facilitate a path forward for Hughes that best serves its customers and its obligations to existing creditors. The Company intends to use the process to engage in discussions with its bondholders and stakeholders around Hughes’s go-forward capital structure and to develop a plan of reorganization.
Hughes has sufficient liquidity to fund its operations in the near-term and will seek to use its existing cash as it works to right-size the company’s balance sheet according to the company.
EchoStar Corporation, EchoStar’s non-Hughes subsidiaries, and Hughes Satellite Systems Corporation’s international subsidiaries are not included in Hughes’ chapter 11 filing. Hughes’ chapter 11 filing has no impact on EchoStar’s other operations, employees or brands, including DISH TV, Sling TV, and Boost Mobile.
White & Case LLP is serving as legal counsel to Hughes and its U.S. subsidiaries included in the chapter 11 filings, including Hughes Network Systems, LLC. FTI Consulting, Inc. is serving as financial advisor to those filing entities.
