EchoStar has been embroiled in a controversy with the Federal Communications Commission in the new administration, which has led to missed interest payments and the threat of bankruptcy.

However, it appears President Trump intervened on EchoStar’s behalf in June, extending the deadline for both parties to agree to a deal.

EchoStar’s distressed stock explodes

Coming into the month, EchoStar’s stock had fallen to distressed levels. That was to be expected; its core satellite TV business is declining, and its efforts to build a 5G mobile network that could rival the other major telecoms was going too slow for the government’s liking. That led to a standoff with FCC Chair Brendan Carr, who had threatened to seize EchoStar’s spectrum to sell to other companies. Amid the FCC review, EchoStar skipped interest payments on its debt, not knowing whether it would be able to continue building its mobile network.

In mid-June, President Trump intervened, calling for a meeting between EchoStar CEO Charlie Ergen and Carr, and apparently telling the parties to come to some sort of amicable deal.

After the meeting, EchoStar made $500 million in interest payments it owed before the 30-day grace period was up, buying the company more time to make a deal with the FCC. That being said, EchoStar decided to skip its $114 million interest payment due on July 1, starting another 30-day grace period before the company is technically in default.

EchoStar avoids bankruptcy, for now

Given its depressed stock price, it’s no surprise to see a big gain when bankruptcy was avoided, and with President Trump seemingly having the company’s back.

That being said, the company isn’t out of the woods. EchoStar still has a massive $26 billion debt load and about $24 billion in net debt, and the success of its potential wireless business is still very much in doubt.

As such, it’s probably best for investors to stay on the sidelines, especially since the stock has surged to a much higher valuation.