Active Stocks
Mon Apr 15 2024 15:59:36
  1. Tata Steel share price
  2. 160.90 -1.59%
  1. ITC share price
  2. 425.90 -0.98%
  1. State Bank Of India share price
  2. 757.75 -1.17%
  1. ICICI Bank share price
  2. 1,078.80 -2.30%
  1. NTPC share price
  2. 361.35 -0.08%
Business News/ News / Dish Parent EchoStar Kills Set of Distressed Debt Swaps
BackBack

Dish Parent EchoStar Kills Set of Distressed Debt Swaps

Dish Network Corp. parent EchoStar Corp. nixed a divisive proposal to restructure more than $5 billion of debt, marking a win for creditors who banded together in the aftermath of the offer.

Dish Parent EchoStar Kills Set of Distressed Debt SwapsPremium
Dish Parent EchoStar Kills Set of Distressed Debt Swaps

(Bloomberg) -- Dish Network Corp. parent EchoStar Corp. nixed a divisive proposal to restructure more than $5 billion of debt, marking a win for creditors who banded together in the aftermath of the offer. 

The company “in its sole discretion" terminated an offer to swap the debt, which is due in the coming years, for new notes, according to a Monday statement. It didn’t disclose the reason for killing the exchange.

Earlier this month, the Englewood, Colorado-based company offered the bondholders the ability to swap their notes for different instruments with a 10% coupon. The new bonds were to be backed by 3 million television subscribers — but those subscribers were transferred out of the reach of existing Dish creditors just days earlier, a move that angered some debt investors. 

Dish did not immediately reply to a request for comment.

Groups of Dish creditors have since signed cooperation agreements, binding them to act together in negotiations with the company, Bloomberg previously reported. 

Read More: Dish Network’s Wireless Dream Turns Nightmarish for Creditors

Still, the company’s previously announced offer to exchange about $4.9 billion of convertible debt for new bonds paying 10% and backed by wireless spectrum assets stands. Holders of more than 60% of the company’s convertible notes due 2026 have signed a cooperation deal, Bloomberg reported.  

A group comprising holders of most of the secured and unsecured bonds tied to a key Dish unit earlier sent a letter to the company’s board threatening legal action if the proposed debt restructuring wasn’t undone. 

Dish is working to tame a more-than $20 billion debt load, several billion dollars of which is coming due soon. The company, best known as a pay-TV provider, recently recombined with satellite operator EchoStar.  

--With assistance from Erin Hudson.

(Updates with cooperation pact details and context throughout.)

More stories like this are available on bloomberg.com

©2024 Bloomberg L.P.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 31 Jan 2024, 12:00 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App