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?

 

[Juan]

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

Probably cheaper

 

[dishdude]

Probably cheaper

Not a chance.

 

[Juan]

Not a chance.

Not over night

• FedEx:
  • Ground: A reliable option, with costs starting around $15.
    
    
  • Overnight: More expensive, potentially upwards of $50.

 

[dishdude]

Not over night

• FedEx:
  • Ground: A reliable option, with costs starting around $15.
    
    
  • Overnight: More expensive, potentially upwards of $50.

Do you know what the hourly labor burden is for a technician in a van per hour?

 

[Juan]

Do you know what the hourly labor burden is for a technician in a van per hour?

Verizon offers the same service for $25

 

[dishstaller]

We retailers could very well find our residuals thrown out the window. Here's what I got when I googled the subject.
Anyway, I was about to start a new ad campaign....that has officially put on halt. I would have NO guarantee of being paid for any installs and I do NOT work for free.

Generally, retailers who are owed money by a company that files for Chapter 11 bankruptcy may receive some payment, but there's no guarantee they will get the full amount or anything at all.
Here's why and what you need to know:

• Chapter 11 is a reorganization process: The goal of Chapter 11 is for the company to restructure its debts and continue operating, not necessarily to immediately pay off all creditors.
• Automatic Stay: When the company files for bankruptcy, an automatic stay is put in place, which halts most debt collection activity against the company.
• Creditor Priority: In bankruptcy, creditors are paid according to a priority order.
  • Secured creditors, who have a lien or security interest in the debtor's property, are generally paid first.
  • Unsecured creditors, which often include retailers owed money for goods or services, fall lower on the priority list.
• Reorganization Plan: The company will propose a reorganization plan outlining how it will restructure its debts and pay creditors over time. Retailers will have a claim for the outstanding amount owed to them, but the plan may propose partial payment or no payment at all, depending on the company's financial situation.
• Proof of Claim: Retailers must file a proof of claim with the bankruptcy court to formally notify the court of the debt owed to them. This is essential for them to be considered in the payout process.
• Possible Outcomes:
  • Partial payment: Retailers may receive a portion of the amount owed as outlined in the approved reorganization plan.
  • No payment: If the company's assets are insufficient to cover all debts after higher-priority creditors are paid, retailers may receive nothing.
  • Negotiation: Retailers might be able to negotiate a settlement with the bankruptcy trustee for a partial payment.

In summary, while retailers have a claim in a company's Chapter 11 bankruptcy, their ability to recover "residuals" (payments) depends on the company's financial status, the approved reorganization plan, and the priority of their claim compared to other creditors.

 

[EarDemon]

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

Probably. Boost has implemented their 'Store to Door' program.

Store-to-Door

www.boostmobile.com

While I never have anything nice to say about anything related to Dish and Chuckie, at least this is something different.

 

[EarDemon]

Boost Mobile/Dish Wireless will be a loser, but as the big three a backing down from in store customer service, Boost is going beyond brick and mortar and doing house calls, so I give them props for that.

Boost is targeting the same customer base Dish Network does, the low end cost conscious. Which is fine, but that doesn't work as well in the mobile world where there are dozens of MVNOs that target that same exact base. Besides Store to Door, Dish has done nothing to differentiate themselves from the competition. With plans ranging from $25 to $60 per month, they are not bringing in a ton of money. Plus they have to pay AT&T and T-Mobile for roaming to fill in their massive native coverage gaps.

They are not targeting premium subscribers, they are not targeting business, they are not doing IoT. Three areas that bring in a ton of $$$. While this is a step in the right direction from the brands Nextel ghetto MVNO drug dealing burner phone past, I don't see how a provider with barley 7 million subscribers is supposed to compete and stay in business against three providers with well over 100 million subs each.

The lack of subscribers currently masks their poor spectrum holdings. If they were to really take off I don't see how the network could hold up under any sort of stress. With the small amounts of low band n71 and n29 for range, speeds would be barley usable at a distance. I think they only have 5 or 10 MHz of each in most markets. n70 and n66 can give you a few hundred megabits, but in highly crowded areas that may not cut it they get a huge influx of subscribers. and when on AT&T and T-Mobile, I would assume they are deprioritized.

 

[HipKat]

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

Correct. Phones, and soon tablets and watches