Aug. 26 at 2:16 AM
The U.S. Trustee has asked a bankruptcy court to appoint an examiner to investigate
$1.5 billion in transactions between EchoStar and its bankrupt subsidiary Hughes Satellite Systems. The request follows a similar petition from bondholders, who allege that EchoStar stripped Hughes of more than
$1.5 billion in assets over the past two years through self-dealing transactions.
Bondholders claim Hughes entered into a noncompetitive lease for the Jupiter 3 satellite with an EchoStar affiliate in December 2023, paid more than
$1 billion in dividends to EchoStar in Q1 2024, and reimbursed the parent company
$196 million for taxes, about 15 times the amount paid in prior years.
Hughes filed for Chapter 11 bankruptcy protection in Houston on Aug. 2, reporting estimated liabilities of
$1 billion-
$10 billion and at least
$774 million in fixed, liquidated, undisputed and unsecured debt.
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