Echostar prepares potential bankruptcy filing

[navychop]

….and seemingly made out like a bandit.

More of a real estate deal.

 

[Bruce]

That article does not even give a passing thought to the possibility of some unknown affecting the outcome. I suspect that some folks have knowledge that was not shared with that article's author.

Or I'm dreaming.

Dreaming, another issue is not many want to work with Ergen, because of his reputation of being impossible to work with, always wants to be in charge, is what I have heard.

My guess, if the other mobile providers want the spectrum(s), they will pick the carcass, it will no longer be up to Dish, Bankruptcy Court's decision.

Chapter 11 is going to put a hold on the entire company, since the court has to approve every decision, marketing, contracts, even price increases ( which I doubt the court would disagree with that), new equipment, including the satellites on order, which the court could order the contracts to be cancelled, anything.

While this might be a good thing to resolve debt, it pretty much puts Dish/Echostar in a holding pattern for, maybe, two years.

Plus the fact that Bankruptcy holds a certain stigma, doubtful they will get many new customers and losses will increase.

Even if they can keep the spectrum, they will be so behind everyone else after 2 years, not much they will be able to do with it.

Declaring Bankruptcy is not a good thing.

 

[nelson61]

Declaring Bankruptcy is not a good thing.

Fortune 500 companies I worked for cut some legal corners and I ended up working for a professional Federal Bankrupty Trustee. This is the only work he did. He would fly in with his leather briefcase but most of his work was in the New York courthouse.

The judge picks whomever he wants and it is quite profitable for the trustee

He got paid management expenses plus 2 percent of the assets.

He explained that contrary to your thoughts, bankruptcy can be a very good thing.

He said the mistake a board makes is delaying bankruptcy. File early and keep the assets in reorganization.

And under chapter 11, the judge's #1 job is to save the company if possible.
This means the company keeps its assets and cash (if it has not used it up) while the creditors, stockholders and BONDHOLDERS take the hit.

Stockholders get wiped out. Bondholders get pennies or a piece of the company.



Contra

 

[Bruce]

He explained that contrary to your thoughts, bankruptcy can be a very good thing.

Or cannot.

None of us knows at this point what Chapter 11 will be like for Dish/Echostar.

 

[dishdude]

The public perception of bankruptcy can tarnish a brand, especially for a product that people intend to use for several years and requires ongoing support from the company.

 

[nelson61]

And, the judge will say the company can complete essential contracts to keep the company viable. In echostars case, definitely the new satellites .

 

[navychop]

Most folks haven't a clue how many companies they deal with that have gone through one or more bankruptcies.

 

[EarDemon]

Echostar is nothing but a collection of dying companies.

Dish Network, dying
HughesNet, dying on the consumer side, may have some relevance in commercial/enterprise for years to come though.
Boost Mobile, how many people outside of tech enthusiasts even know this is a quasi real carrier and not the ghetto drug dealer/pimp MVNO of yesteryear?
Sling, I knew more people who had Sling Boxes that had Sling TV, which says a lot since the Sling Box was niche product. The few people I knew with Sling TV no longer have it. Hardly anyone knows what this is anymore and they are losing subscribers

I guess there's always guaranteed income every few years when the family that owns the Blockbuster in Bend, OR has to re-up to continue to use the Blockbuster name.

 

[Juan]

Juan, that is a year old story.

It explains WHY they are going bankrupt

 

[HipKat]

Boost Mobile, how many people outside of tech enthusiasts even know this is a quasi real carrier and not the ghetto drug dealer/pimp MVNO of yesteryear?

More than you think. Every new phone delivery we've had this week was in nice, middle-class neighborhoods.

 

[dishdude]

More than you think. Every new phone delivery we've had this week was in nice, middle-class neighborhoods.

So you're hand delivering phones and not just shipping them?