Charlie Ergen Makes ‘Inscrutable’ Moves, Shields Parts of Dish Spectrum and Pay TV Biz From Existing Creditors

After closing on his re-merger of Dish Network and EchoStar, Chairman Charlie Ergen outlined a series of strategic asset shifts that shield certain spectrum assets, as well as the cash generated by about three million Dish pay-TV subscribers, from existing creditors. The moves “further unlock incremental strategic, financial and operating flexibility for its business following completion of its merger” with Dish Network. In an investor note headlined, “Making Sense of the Inscrutable,” equity analyst Craig Moffett labeled the announcement “bewilderingly complicated,” while noting the conspicuous absence of a follow-up conference call by Ergen and his team to explain the “why” behind the moves. Moffett also referenced the collapse of the Dish Network bond market, with investors worried about the company's more than $20 billion of debt.