EchoStar faces over $1.5 billion in claims from Hughes creditors, due to alleged asset transfers before the subsidiary's bankruptcy.
U.S. Bankruptcy Court Judge Alfredo Perez is scheduled to hear a request today to appoint an examiner to investigate allegations that EchoStar transferred over $1.5 billion in assets from its subsidiary, Hughes Satellite Systems, through dividends, above-market leases, and tax payments, prior to Hughes filing for bankruptcy. Hughes' bondholders claim that EchoStar's $20 billion spectrum deal with SpaceX, which includes up to $11 billion in SpaceX stock, is central to the creditors' asset stripping claims. EchoStar itself is not a debtor in the Hughes bankruptcy case, but if an independent examiner finds improper transfers, creditors could seek to recover more than $1.5 billion.
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