EchoStar Corporation ( SATS ) shares are trading higher Friday after the company confirmed President Trump encouraged it and the FCC chair to reach a deal over its wireless spectrum licenses and a report that stated EchoStar ( SATS ) is making delayed interest payments, averting default.

The move comes as EchoStar ( SATS ) continues to face regulatory uncertainty stemming from an ongoing Federal Communications Commission review of its use of cellular and satellite spectrum licenses. The company had initially withheld payments to allow time to gather information and explore potential resolutions with the FCC. According to a company filing, EchoStar ( SATS ) Chairman recently met with FCC Chair Brendan Carr to discuss concerns about possible changes to previously approved spectrum construction timelines and usage rules, which could threaten company operations.

What To Know: The payments, originally due on May 30 and June 2, are being made within the 30-day grace periods, satisfying requirements under the company's bond agreements.

The regulatory pressure has triggered concerns among creditors but the company emphasized that it is acting in good faith to cure technical defaults while continuing discussions. President Trump reportedly encouraged both EchoStar ( SATS ) and the FCC to work toward a resolution, a development that may have further calmed investor fears.

While the company is addressing the previous missed payments, it also disclosed that it will not be making $114 million in interest payments due on July 1, tied to senior notes maturing in 2026 and 2028, according to the Wall Street Journal. These payments are also subject to a 30-day grace period and the company has not ruled out further delays as it evaluates its strategic options amid ongoing regulatory negotiations.

SATS Price Action: Echostar Corporation ( SATS ) shares were up 12.7% at $28.69 at the time of writing, according to Benzinga Pro.

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