EchoStar/Dish raises doubts about 'ability to continue as a going concern'

[Teehar]

The reason that Red Lobster went bankrupt was because of their Endless Shrimp promotions. As long as Charlie doesn't suddenly give out free shrimp or lobster to all subscribers, Dish will do fine.

Dish stock is up almost 50 percent in the last six months!

well after being with Charlie for all these years,one thing I can safely say,he isn't going to give much of anything away,let alone shrimp lol

 

[dishdude]

well after being with Charlie for all these years,one thing I can safely say,he isn't going to give much of anything away,let alone shrimp lol

He did sell the Littleton campus to a holding company he controls and is leasing it back to Dish. 🤔

 

[Yespage]

well after being with Charlie for all these years,one thing I can safely say,he isn't going to give much of anything away,let alone shrimp lol

But with Red Lobster in bankruptcy, the option is there for Dish to absorb them like they did with Blockbuster. Fried shrimp and Dish supplied media just go hand in hand.

And anyone that suggests Dish doesn't have the liquidity to absorb Red Lobster or that it is a different type of bankruptcy, I will drop an anvil on them.

 

[Teehar]

But with Red Lobster in bankruptcy, the option is there for Dish to absorb them like they did with Blockbuster. Fried shrimp and Dish supplied media just go hand in hand.

And anyone that suggests Dish doesn't have the liquidity to absorb Red Lobster or that it is a different type of bankruptcy, I will drop an anvil on them.

That's hilarious lol

 

[telstar_1]

DiSH could become the next meme stock.

 

[Yespage]

DiSH could become the next meme stock.

Dish 'n Fish. Honestly, Ergan made a mistake with 5G. He should have sought 5 fathoms below the sea.

 

[TheKrell]

That's not why, venture capitalists came in and sold all their assets off to a holding company they controlled and leased it back to Red Lobster. If they go bankrupt they don't care, they still hold all the assets.

GD vulture capitalists! There ought to be a law...

 

[Yespage]

GD vulture capitalists! There ought to be a law...

Them too?! Yeah, there should be laws against leveraged purchases of companies. They used Red Lobster assets to help them pay for Red Lobster, which then made the cost of business notably higher for Red Lobster stores.

It is bad enough that private equity is buying up America. But at least some of them are using cash. The highly leveraged purchases and abuse of Dunkin Donuts, Toys R Us, Red Lobster, etc... it is like the movie Wall Street all over again.

 

[Bruce]

A little news-

Creditors to EchoStar’s Hughes Hire Lawyers to Probe Lease Deal

(Bloomberg) -- Some creditors to Hughes Satellite Systems Corp. engaged law firm Glenn Agre Bergman & Fuentes to scrutinize a costly lease arrangement that they say funnels cash away from the unit to its parent EchoStar, according to people familiar with the situation. Most Read from...

finance.yahoo.com

The one thing I noticed-

Hughes’ board of directors also made two dividend payments totaling more than $1 billion to parent EchoStar in the first-quarter, regulatory filings show.

But even after that, plus all the revenue it took in during that quarter, still only had 766 Million left in cash at the end of the first quarter.

EchoStar Cash on Hand 2010-2024 | SATS

EchoStar cash on hand from 2010 to 2024. Cash on hand can be defined as cash deposits at financial institutions that can immediately be withdrawn at any time, and investments maturing in one year or less that are highly liquid and therefore regarded as cash equivalents and reported with or near...

www.macrotrends.net

Then this-

EchoStar (NASDAQ:SATS) Use Of Debt Could Be Considered Risky

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

simplywall.st

at the end of March 2024, EchoStar had US$21.7b of debt, up from US$1.50b a year ago. Click the image for more detail. On the flip side, it has US$766.4m in cash leading to net debt of about US$20.9b.

According to the last reported balance sheet, EchoStar had liabilities of US$7.00b due within 12 months, and liabilities of US$28.7b due beyond 12 months. Offsetting these obligations, it had cash of US$766.4m as well as receivables valued at US$1.02b due within 12 months. So it has liabilities totalling US$33.9b more than its cash and near-term receivables, combined.

 

[MikeD-C05]

Reorganization Bankruptcy is the next step.

 

[Bruce]

Reorganization Bankruptcy is the next step.

Found this today in one of the Financial Newsletters sent to me-

Debtwire has come up with with what it says is the industry’s “first predictive score for leveraged” (meaning having more debt than equity) companies and their likelihood of becoming “stressed, distressed or entering a restructuring.”

Companies that make the list “are experiencing financial or operational trouble that may result in their inability or unwillingness to pay debts, interest payments, or potentially any other liabilities as they become due,” Debtwire says.

Companies with stressed debt have serious financial problems. When the debt is considered distressed, the problems have become more severe. At that point, a company may be on the brink of bankruptcy or already mired in it.

Then this-

Tied atop Debtwire’s list with a score of 99 were EchoStar Corp. — the company behind such brands as Boost Mobile and Dish TV, business process automation company Exela Technologies, and Office Properties Income Trust.

https://www.expressnews.com/busines...media-made-list-no-company-wants-19567551.php

 

[nelson61]

Those holding the paper have a problem.

Rest assured, Charlie has long since protected his personal money and is now is watching a stare down contest to see which investor(s) takes the hit.

 

[CSM]

I wonder how Dish could have afforded to contract out for a new satellite to be built?

 

[AZ.]

I wonder how Dish could have afforded to contract out for a new satellite to be built?

Credit card? LOL

 

[CSM]

AT&T has the option to sell their 70% stake in DTV after this month. I wonder if AT&T decides to sell and finds a new buyer could that same buyer buy Dish and put DTV and together and save Dish?

 

[dishdude]

AT&T has the option to sell their 70% stake in DTV after this month. I wonder if AT&T decides to sell and finds a new buyer could that same buyer buy Dish and put DTV and together and save Dish?

The problem is all the subscribers from one service would need to be converted over to the other....big $$$$. And who would want the assets of the whichever company they swap from?

 

[Bruce]

AT&T has the option to sell their 70% stake in DTV after this month. I wonder if AT&T decides to sell and finds a new buyer could that same buyer buy Dish and put DTV and together and save Dish?

Who would buy both?

Specially since DirecTV is still holding $10 Billion in debt, Echostar has almost $20 Billion in debt, total liabilities of $35 Billion

At the rate of sub losses, a new company would never make enough to cover that much debt.

 

[Ray_Clum]

Even if you kept the packages and equipment different, you would gain a lot of savings on the back end - customer service, backhauls, marketing, central office, etc. Probably would be enough to provide enough time to switch DTV equipment to Dish, or visa versa or a hybrid box to pick up both (or even merge DTV Stream and Sling into one streaming service and offer multiple tiers)

 

[CSM]

Who would buy both?

Specially since DirecTV is still holding $10 Billion in debt, Echostar has almost $20 Billion in debt, total liabilities of $35 Billion

At the rate of sub losses, a new company would never make enough to cover that much debt.

Sorry, I forgot AT&T really bought DTV for the customer base. They knew satellite TV was failing and they were hoping that DTV satellite customers would go to DTV Now and that didn't happen. I was thinking maybe a new owner would be more successful at it? They could combine DTV via the Net, DTV Stream and Sling TV into a new streaming company and maybe offer better pricing than the current ones? Also, maybe keep that new satellite that Dish contracted out for and combine the satellite services into one? The new company could have your choice of one satellite TV service and one streaming service?

 

[Bruce]

Even if you kept the packages and equipment different, you would gain a lot of savings on the back end - customer service, backhauls, marketing, central office, etc. Probably would be enough to provide enough time to switch DTV equipment to Dish, or visa versa or a hybrid box to pick up both (or even merge DTV Stream and Sling into one streaming service and offer multiple tiers)

Sorry, I forgot AT&T really bought DTV for the customer base. They knew satellite TV was failing and they were hoping that DTV satellite customers would go to DTV Now and that didn't happen. I was thinking maybe a new owner would be more successful at it? They could combine DTV via the Net, DTV Stream and Sling TV into a new streaming company and maybe offer better pricing than the current ones? Also, maybe keep that new satellite that Dish contracted out for and combine the satellite services into one? The new company could have your choice of one satellite TV service and one streaming service?

For all these ideas, no one is bring up the obvious, how do they stop the subscribers leaving, which is at a rate of 2 Million per year for DirecTV ( as confirmed by Fitch Ratings) and 1.2 Million for Dish/Sling.

That question is for the current owners and for any prospective new owners.