2024-11-02 00:47:23 :
(Bloomberg) — Dish Network Corp.’s creditors plan to reject the U.S. satellite TV provider’s revised bond exchange offer, which must be approved before it can be acquired by rival DirecTV.
A group of steering committee investors do not believe the latest proposal, which would lower minimum losses on the $8.9 billion bond by $70 million to $1.5 billion, is feasible, according to people familiar with the matter who asked not to be identified. negotiation.
Bondholders proposed a $300 million cut and said there would be some flexibility beyond that, people familiar with the matter said. The acceptance deadline is November 12, and as of October 28, a handful of notes have been issued in support of the exchange offer.
The pay-TV provider has been waging a battle with Dish DBS Corp. holders since announcing on Sept. 30 that TPG Inc. would acquire the remaining shares of DirecTV it doesn’t own and then acquire Dish Network for $1 plus the assumption of debt. of bonds. An exchange of letters between representatives of DirecTV’s bondholders and attorneys has stalled.
A group of bondholders said the two companies “worked out an agreement that would allow DBS shareholders to further siphon billions of dollars of value out of DBS,” while DirecTV rejected the offer, according to Bloomberg previous offer and threatened to abandon the acquisition of Dish Network.
Ropes & Gray is serving as legal counsel to DirecTV. Neither TPG nor DirecTV responded to requests for comment. Milbank, who represents the creditor group, did not respond to a request for comment, while a representative for Lazard, which also advises creditors, declined to comment. Representatives for Houlihan Lokey Inc. declined to comment, while Dish consultant White & Case did not respond.
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