DISH Washing Revisited Part Three: Bankruptcy and Landlords’ Ability to Make Claims from FCC Fund

This alert is the third installment in BBK’s ongoing tracking of developments in DISH’s efforts to avoid fulfilling obligations under its existing wireless leases. In December 2025, BBK wrote to advise public and private landlords not to accept DISH’s assertion that the Federal Communications Commission’s (FCC) actions excuse its lease obligations under the legal theory of “Force Majeure.” BBK’s February 2026 update provided insights into ongoing litigation and suggested that landowners follow the litigation to piggyback any decisions on the Force Majeure claim. In May, the FCC approved an order establishing a $2.4 billion escrow fund (“FCC Fund”) as a condition for approving EchoStar’s (DISH parent) spectrum transfer and on June 30, DISH filed for bankruptcy. In light of these recent developments, Landlords, both public and private, should take steps to preserve your real estate claims as established below.

FCC Fund Requires a Judgment, Arbitration Award or Settlement

The FCC’s order approving EchoStar’s transfer of spectrum licenses to AT&T and SpaceX was conditioned on EchoStar’s establishment of a $2.4 billion dollar fund. The FCC Fund was the FCC’s effort to ensure that DISH’s infrastructure partners (landlords, tower companies and fiber providers) have an avenue to seek monies owed. The problem with the Fund is that a party on whom DISH has defaulted, is not automatically entitled to recover.

The Fund will only reimburse entities that have:

A final judgment from a court,
An arbitration award, or
A settlement with an EchoStar subsidiary or affiliate (including DISH).

Accordingly, wireless landlords with a defaulting DISH tenant should take steps to obtain a final judgment, arbitration award or settlement with DISH or EchoStar. Eligible claims include amounts arising from the construction, operation, maintenance, building, decommissioning or provisioning of goods or services relating to communications sites or the communications network.

The FCC has not specified a filing deadline for submitting a claim to the Fund.

FCC Fund Claim Types and Method of Recovery

The FCC Fund categorizes claims into three tiers based on both the amount of the claim and the nature of the damages sought:

Type A claims consist of claims seeking $100,000 or less and are paid as the Trustee validates them.
Type B-1 claims are those that exceed $100,000 and include amounts that were due and owing as of December 31, 2025 (or an earlier applicable notice date), as well as costs already incurred or reasonably expected to be incurred, such as decommissioning expenses. These claims are paid every six months and, if the fund is insufficient to satisfy all approved claims, are paid on a pro rata basis.
Type B-2 claims consist of the portion of claims seeking damages for future lost rents, profits or other future amounts under terminated agreements. These claims are not eligible for payment until five (5) years after the Claims Opening Date and are paid in full, if sufficient funds remain. Otherwise, Type B-2 claims will receive pro rata distributions.

Chapter 11 Filing Does Not Eliminate Access to the Fund

On June 30, 2026, as part of the ongoing bankruptcy case in the U.S. Bankruptcy Court for the Southern District of Texas (Bankruptcy Court), DISH and affiliated entities commenced a Prepackaged Chapter 11 filing. The proposed restructuring contemplates that qualifying claimants may continue to pursue recovery from the FCC Fund, subject to the trust’s eligibility requirements.

The disclosure statement expressly provides that holders of qualifying “Covered Claims” may elect to seek recovery from the FCC Fund and describes the trust as a separate source of recovery funded outside the bankruptcy estates.

On July 9, 2026, the Bankruptcy Court entered an order establishing deadlines for creditors to file proofs of claim in the DISH Wireless Chapter 11 cases:

Non-government creditors must file a proof of claim by August 7, 2026, at 5:00 p.m. Central Time.
Governmental units which, as defined in 11 U.S.C.A. § 101(27), includes municipalities, have until December 27, 2026, at 5:00 p.m. Central Time to file proofs of claim.

Accordingly, cities, counties and other local governmental entities generally qualify for the later governmental claims deadline. Creditors that fail to timely file a required proof of claim generally will be barred from participating in distributions under the Chapter 11 plan.

The bankruptcy claims process does not replace the FCC’s $2.4 billion trust fund. Rather, the two processes operate independently and for many creditors, both may be considered. Filing a proof of claim preserves a creditor’s rights against the bankruptcy estates, while eligibility to recover from the FCC Fund, as provided above, requires the claimant to first obtain a final judgment, arbitration award or settlement against a covered entity for qualifying claims. Important to note, the dates for filing a bankruptcy claim are not the same as the date to file for the Fund, which the FCC has not yet announced the date for.

Creditors seeking recovery from both sources should carefully consider preserving their rights in the bankruptcy proceeding by timely filing a proof of claim while simultaneously evaluating litigation, arbitration or settlement strategies necessary to satisfy the FCC Fund’s eligibility requirements.

Practical Implications

For local governments and other DISH wireless landlords, the FCC Fund may represent the most significant source of recovery for unpaid obligations. However, because access to the FCC Fund depends upon obtaining a qualifying judgment, arbitration award or settlement, claimants should consult with their legal advisors on how best to achieve one of the three results.

BBK will continue to monitor the bankruptcy proceedings and the FCC Fund administration process and report on further developments as they might impact landlords’ interest. For additional questions regarding the FCC Fund, the DISH bankruptcy or strategies for preserving potential claims, please contact Gerard Lederer or Gregory Caffas.

These developments, along with other emerging telecommunications issues affecting local governments, will be discussed in greater detail during BBK's upcoming webinar, "Three Leading Challenges Facing Local Governments in Today's Telecommunications Marketplace," on Tuesday, July 28, from 11:30 a.m.-12:30 p.m. PT / 12:30 p.m-1:30 p.m. MT / 1:30 p.m.-2:30p.m. CT / 2:30 p.m.-3:30 p.m. ET. Register here.

Disclaimer: BBK Legal Alerts are not intended as legal advice. Additional facts, facts specific to your situation, or future developments may affect subjects contained herein. Seek the advice of an attorney before acting or relying upon any information herein.