EchoStar's Hughes Network Wins Interim Approval to Keep Control of Its Bankruptcy

Updated Oct 24, 2026

A federal bankruptcy judge in Houston has let EchoStar's Hughes satellite business keep control of its Chapter 11 case for now. On Tuesday, Oct. 20, 2026, U.S. Bankruptcy Judge Alfredo R. Pérez turned back, on an interim basis, a creditor group's bid to end Hughes's exclusive right to write its own reorganization plan. The court scheduled a follow-up hearing in December. For Hughesnet customers, nothing about the ruling changes service today.

What the judge decided

Hughes Satellite Systems Corp. and several U.S. subsidiaries, including Hughes Network Systems, LLC, filed for Chapter 11 on Aug. 2, 2026, in the U.S. Bankruptcy Court for the Southern District of Texas. The case is jointly administered as In re Hughes Satellite Systems Corporation, No. 26-90739. Hughes runs the business as a debtor-in-possession, which means current management stays in charge under court oversight.

In Chapter 11, the debtor gets a window, called the exclusivity period, when only it can propose a reorganization plan. A group of noteholders, including Capital Research and Management, Silver Point Capital and Lord, Abbett & Co., asked the court to end that window early so it could pursue its own plan. Bloomberg News reported that the noteholders' approach relies in part on repaying debt by suing parent company EchoStar and its controlling shareholder, Charles Ergen. Judge Pérez ruled from the bench on Oct. 20 that the noteholders can't take that route for now, and a written interim order followed on Oct. 21. The creditors can raise the issue again at the December hearing.

What it means for Hughesnet service

Hughes said when it filed that it planned to keep serving customers and that its customer service and support lines remain active. The court's first-day orders let it keep running in the ordinary course, including paying employees and honoring customer programs. The Oct. 20 ruling is about who controls the restructuring plan, not about turning anyone's service off. Keep paying your bill as usual to keep your service.

The longer-term picture is less clear. Hughes said it plans to refocus on enterprise, government and defense customers. EchoStar reported 622,000 broadband subscribers at the end of June 2026, down 59,000 in the second quarter. Hughesnet is also shutting down its customer email service; see the Hughesnet email shutdown. If Hughes is your only option today, there's no need to rush, but check whether your contract has an early termination fee before you switch.

Other satellite options

Starlink is the main alternative in most rural areas; see Hughesnet vs. Starlink and Starlink alternatives for your home. Viasat is a separate company from Hughes (see is Viasat owned by Hughesnet?), and its plans come with a guaranteed floor of 80 Mbps down and 3 to 5 Mbps up. Check Viasat availability by address. For more on EchoStar's other moves, read more EchoStar spectrum could be up for sale.

What happens next

The court is scheduled to revisit the exclusivity fight in December. Until then, Hughes keeps control of its plan process and Hughesnet keeps operating.