Creditors Allege EchoStar Drained $1.5B from Hughes Before Chapter 11
Bondholders allege EchoStar drained more than $1.5 billion from Hughes via dividends, above-market leases, and tax payments before Hughes filed Chapter 11. Creditors say EchoStar’s SpaceX spectrum deal—including up to $11 billion in SpaceX stock—lies behind their asset-stripping claims, and they are pressing whether Hughes Satellite Systems was stripped before bankruptcy.