(Bloomberg) -- For the second time in two weeks, Dish Network Corp. parent EchoStar Corp. is scrapping a controversial proposal to restructure debt after creditor backlash.
The satellite television provider announced on Monday the termination of offers to exchange more than $4.9 billion of convertible notes issued by Dish. The proposed exchange would have swapped notes due in 2025 and 2026 for new senior secured notes due 2030. The offer did not receive enough participation from existing noteholders, according to a statement.
Lenders were angered and came together earlier this year after the company shifted some of its most valuable assets out of reach of existing creditors and offered bondholders the ability to swap notes for different instruments. Dish didn’t respond to an emailed request for comment.
This marks another blow to the Englewood, Colorado-based company’s overarching goal to tame its debt load of more than $20 billion as Dish tries to transition its business from pay-TV to wireless services. The firm still needs to extend debt maturities and raise new capital.
Read more: Dish Launches Debt Swap After Controversial Asset Transfer
At the end of January, Dish axed one part of the proposal to restructure more than $5 billion of debt as creditors formed groups opposing the proposition. The company’s convertible noteholders had also signed a cooperation deal, Bloomberg reported.
©2024 Bloomberg L.P.