EchoStar faces probe request over $1.5B in Hughes transactions

EchoStar is facing a request for an independent examiner to investigate more than $1.5B in transactions involving bankrupt subsidiary Hughes Satellite Systems.
Bondholders representing roughly 80% of Hughes' senior debt allege EchoStar stripped assets through a series of self-dealing transactions over the past two years.
Hughes filed for Chapter 11 on August 2, one day after $1.5B of bonds matured.
A bankruptcy judge is expected to consider the examiner request Wednesday.
Hughes has not conceded that the bondholders' allegations have merit.
The dispute adds another layer of legal and credit risk around the EchoStar capital structure.