As part of the reorganization, the company is laying off 400 employees, nearly a third of its total workforce.
This filing highlights the massive competitive pressure from low-Earth orbit (LEO) satellite constellations, which use fleets of satellites closer to the ground to provide faster internet than traditional services.
EchoStar noted that its broadband subscriber count fell to 622,000 this year, a decline the company expects will not reverse due to the structural advantages of its LEO competitors.
The restructuring aims to stabilize the company's capital so it can pivot toward serving enterprise, defense, and government sectors.
While Hughesnet intends to continue serving its existing satellite internet customers during the court-monitored process, it is developing a multi-year business plan to transition into an enterprise-led platform.
To manage the transition, the company has appointed a Chief Restructuring Officer to oversee its balance sheet and operations.
Although parent company EchoStar previously discussed a program to refer its users to Starlink, that initiative has not yet been fully implemented.