https://finance.yahoo.com/news/dish-bondholders-sue-struggling-company-012523236.html
What does this mean?
5 replies (most recent on top)
Would a BK still be likely either way?
Also, not sure if they publicly announced if they did a re-org after the merger. Hopefully, questions are answered in the Q1 earnings call.
They have not announced a plan for funding the debts due in November
If these asset moves are held legal, it likely makes it easier to raise new cash - because one of the new subsidiaries that holds valuable assets and little debt is a better risk to lend money to than echostar as a whole. Similarly, it might give them more leverage to negotiate a new deal with their creditors, because of these asset moves are held legal, their current creditors won't get much in a bankruptcy (echostar could have the subsidiary that holds the most debt declare bankruptcy, but echostar's most valuable assets - like its spectrum - would be legally owned by a /different/ subsidiary, and therefore couldn't be ordered sold to pay creditors in the bankruptcy).
What was the point of it? Have they announced how they will get enough cash to pay off debts or not yet?
Not much really, there are other similar lawsuits wending their way through the courts already.