In Hughes Network Systems Chapter 11 restructuring, lenders question terms of its transactions with parent EchoStar

by Peter B. de Selding

TUPPER LAKE, NY— The Chapter 11 bankruptcy filing of Hughes Satellite Systems and affiliated companies following non-payment of $1.5 billion in debt has prompted the dismissal of 31% of its work force and will lead to a potentially nasty battle with lenders over Hughes’s relationship to parent company EchoStar Corp.

In an Aug. 3 filing in the Bankruptcy Court for the Southern District of Texas, Hughes Chief Restructuring Officer Robert Del Genio said 400 Hughes employees in late July were given an average 60 . . .

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