Bargain shopper

9 February 2011 By Robert Cyran Follow @rob_cyran

Charles Ergen, the payTV mogul renowned for his pennypinching ways, is trying to win control of two bankrupt satellite companies. They would give him a cheap seat in the booming mobile data market or a tool to fight rivals. But others may yet prevent this steal of a deal.

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Dish Network has agreed to buy DBSD North America, a satellite network operating under bankruptcy, for $1 billion. The payTV company will also provide $87.5 million of debtorinpossession financing.

Under the plan, Dish would pay DBSD's senior creditors in full. A group of creditors, led by Highland Capital, is opposed to the offer and says DBSD should perform a debtforequity swap instead. A hearing on the matter will be held on Feb. 15.

EchoStar, a satellite and technology company that was split off from Dish, is also attempting to win control of TerreStar, a rival satellite company in bankruptcy. It has bought more than half of TerreStar's senior debt.

Charles Ergen cofounded both Dish and EchoStar. He is chief executive and chairman at Dish, and chairman at EchoStar.

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