By Dean Seal
The EchoStar board member who runs its investment division and its subsidiary Hughes Network Systems is resigning, weeks ahead of Hughes's $1.5 billion debt maturity.
EchoStar said Tuesday that Hamid Akhavan, the chief executive of both the EchoStar Capital business and Hughes as well as a member of the EchoStar and Hughes boards, is stepping down from all positions.
The decision comes after Akhavan's discussions with the EchoStar board on Monday about a change in strategic direction, the company said in a securities filing. Akhavan will be available to consult with EchoStar and Hughes through the end of the year to ensure an orderly transition, the company said.
EchoStar cofounder and CEO, Charlie Ergen, will take over Akhavan's responsibilities as principal executive officer of Hughes, the filing said.
As part of the transition, EchoStar Capital will be folded into the company's corporate development division run by Thomas Cullen, EchoStar said.
Akhavan had served as CEO of EchoStar from early 2022 until last November, when Ergen took the role over.
This latest shakeup comes after creditors to Hughes tapped restructuring counsel for advice ahead of a $1.5 billion debt maturity coming for the consumer satellite internet company on Aug. 1, according to a report from The Wall Street Journal.
Write to Dean Seal at dean.seal@wsj.com