Why EchoStar Skyrocketed This Week

Shares of (NASDAQ: SATS) have rallied a whopping 92.9% this week as of 10:48 a.m. ET Friday, according to data from S&P Global Market Intelligence.

The threat of bankruptcy loomed over EchoStar earlier this year when the company skipped interest payments as the government called into question its right to use wireless spectrum it had purchased years earlier.

But this week, a compromise solution emerged, as EchoStar was able to sell its spectrum to a third party rather than having it seized, while also being able to "rent" that spectrum for the wireless network it's building. Not only that, but it was able to sell the spectrum for a huge sum that pretty much wipes out its debt.

Source Fool.com