EchoStar’s Hughes Network Systems filed for Chapter 11 bankruptcy on Sunday, seeking relief from its $1.5B debt that matured on Aug. 1, with payment due Monday. In the filing, Hughes disclosed it lacks the cash and access to capital markets to meet the obligation, noting it held only $102M in cash at the end of March.

The bankruptcy filing follows a recent quarter in which EchoStar swung to a profit, driven largely by a large, non‑cash gain at Hughes Network Systems, the consumer satellite‑network unit owned by Charlie Ergen’s EchoStar. The gain helped offset the mounting financial pressure on the subsidiary.

Hughes, headquartered in Germantown, Md., has moved to continue operating without interruption while the Chapter 11 process unfolds. The company filed a motion in a Texas court to keep its business running, asserting it has sufficient liquidity to fund near‑term operations.

The filing underscores the severity of the $1.5B debt burden that now weighs on the firm, prompting EchoStar to pursue bankruptcy protection as a strategic response to preserve value for stakeholders and ensure an orderly restructuring.