DISTRESS WATCH: EchoStar’s FCC Troubles Trigger Distress Spike

EchoStar’s decision to halt its debt coupon payments at the end of May, with a possible Chapter 11 filing at the end of the grace period, was behind a sudden spike in global distressed debt. That came even amid a relatively benign week for credit markets broadly.

The total amount of bonds and loans in Bloomberg News’ global distressed debt trackersoared 1.7% to $515.8 billion during the week ended June 6, the biggest weekly increase in almost two months, according to data compiled by Bloomberg.

EchoStar, controlled by billionaire Charlie Ergen, has about $25 billion in ...