EchoStar is going through one of the roughest stretches in its history, and the news keeps piling up fast.Just days after two of its subsidiaries filed for bankruptcy protection, the company disclosed that a longtime executive is stepping down from his leadership roles entirely.The timing has raised plenty of questions among investors and customers alike about what comes next for the Englewood, Colorado-based company. EchoStar’s CEO shakeup spooks Wall StreetEchoStar (SATS) told the Securities and Exchange Commission that Hamid Akhavan has resigned from all his positions with EchoStar Capital and Hughes Satellite Systems, effective immediately, according to a regulatory filing. A report from Mobile World Live states:Akhavan had served as CEO of EchoStar Capital and as president and CEO of Hughes Satellite Systems. This subsidiary runs the company’s satellite broadband business under the Hughes and HughesNet brands. The filing said his departure followed talks with EchoStar’s board about a change in strategic direction, though it did not specify exactly what that new direction would look like. Akhavan will stay on as a consultant to EchoStar and Hughes through December 2026 to help smooth the handoff. As part of his exit package, EchoStar agreed to speed up the vesting of his stock options, moving the date up to July 6 from the original schedule of Dec. 31.Akhavan joined EchoStar as CEO and president back in March 2022, taking over from Michael Dugan, and later joined the board in December 2023 when EchoStar merged with Dish Network. He led the combined company as CEO and president until November 2025, when he shifted into the EchoStar Capital and Hughes roles. During his tenure, EchoStar struck major spectrum sales with both SpaceX and AT&TCompany chair and co-founder Charlie Ergen will now take over Akhavan’s duties as the principal executive officer of Hughes, the filing noted.Separately, EchoStar Capital will now be absorbed into the corporate development division led by Thomas Cullen, a nearly 20-year company veteran.Dish bankruptcy filing adds pressure on EchoStarThe leadership change lands right after Dish DBS Corporation and Dish Wireless filed prepackaged Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas.The filing puts into motion a restructuring plan already backed by holders of more than 88% of Dish DBS notes, who also control over $8.8 billion of Dish Wireless debt. Because so many creditors signed on ahead of time, EchoStar expects the plan to clear court approval quickly, with an exit from Chapter 11 targeted before the end of the third quarter of 2026.EchoStar said the filing became necessary because its long-awaited spectrum sale to AT&T has not yet closed. Related: AT&T leaves rivals flat-footed as bankrupt carrier foldsDish DBS owes $2 billion in notes due on July 1, and it was counting on proceeds from the AT&T deal to cover that payment. Ergen stated:”EchoStar has been at the forefront of telecommunications for over 45 years, and these steps will position the business for an even stronger future. We are operating as usual throughout this process, delivering the same high-quality services that our customers expect.”Importantly, EchoStar stressed that Dish TV, Sling TV, Boost Mobile, Gen Mobile and Hughes are not part of the bankruptcy cases and will keep operating as usual for customers and employees.More Bankruptcy:28-year-old important high-tech firm files Chapter 11 bankruptcyPopular sporting goods store chain files Chapter 11 bankruptcyInternet provider files Chapter 7 bankruptcy, cuts off serviceOne casualty of Dish Wireless winding down its remaining assets is Project Genesis, the budget hotspot and phone service Dish launched in 2022 in hopes of building a fourth major wireless carrier. That service is being shut down for good, with billing ending after the July payment and service cutting off entirely on Aug. 31, 2026.
EchoStar inked spectrum deals with AT&T and SpaceXVCG/Getty Images
What it means for EchoStar stockThe moves come as EchoStar works through a genuinely difficult financial stretch. The company posted a net loss of roughly $147 million in the first quarter of 2026 and carries about $11.8 billion in bills due within a year, against only $3.5 billion in current assets. Multibillion-dollar spectrum sales to AT&T and SpaceX are expected to close much of that gap eventually, but neither deal has fully closed yet. Until they do, EchoStar is leaning on cost cuts, asset sales, and now a bankruptcy filing at its wireless unit to buy time. For shareholders, the leadership exit adds another layer of uncertainty to a company already racing against a wall of debt.Related: T-Mobile stands to benefit as rival files Chapter 11 bankruptcy