EchoStar faces scrutiny over $1.5B in Hughes transactions

The U.S. Trustee is seeking an independent examiner to investigate more than $1.5 billion in transactions between $ECHO and bankrupt Hughes Satellite Systems.
Hughes bondholders allege EchoStar stripped assets through self-dealing transactions before Hughes filed for Chapter 11 on August 2.
The allegations have not been established as fact, but the examiner request adds another layer of legal and credit risk around the situation.
For $ECHO, the case could become increasingly important if the court authorizes a deeper independent review.