EchoStar Drops 10.9% After DISH DBS Misses $183 Million Interest Payment
Updated
Updated · The Motley Fool · Jun 12
EchoStar Drops 10.9% After DISH DBS Misses $183 Million Interest Payment
3 articles · Updated · The Motley Fool · Jun 12
Summary
EchoStar fell 10.9% to $114.16 after its DISH DBS unit skipped about $183 million in interest due June 1, reviving credit-risk concerns.
50 million shares changed hands—about 542% above its three-month average—as profit-taking followed recent SpaceX-proxy gains and investors refocused on liquidity.
EchoStar said the nonpayment was meant to preserve cash while it awaits proceeds from its spectrum transaction with AT&T; the missed payment triggered a default with a 30-day grace period.
First-quarter revenue declines and continued pay-TV subscriber losses have increased pressure on management to monetize spectrum quickly and shore up the balance sheet.