A group of bondholders sued satellite company EchoStar for allegedly having diverted some $13 billion in Dish Network’s assets, without compensating them.
According to the court filing, EchoStar, which recently merged with Dish, offered the assets back to the bondholders, but at steep discount. The offer was rejected.
Reportedly, the telecommunications company siphoned three million Dish subscriber contracts into a new subsidiary. In addition, EchoStar moved Dish spectrum licenses to an EchoStar subsidiary.
EchoStar, based in Englewood, Colorado, is controlled by Charlie Ergen. The company is reportedly looking for ways to deal with a $20 billion debt load.
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