Dish Creditors Weigh Legal Options Including Default Notice

Some Dish Network Corp. creditors are examining legal options including sending a default notice to the company after it moved prized assets out of bondholders’ reach, according to people with knowledge of the matter.

The discussions come after the company’s bonds plummeted — in at least one case to a record low — on its decision to shuffle valuable spectrum licenses and television customers into new legal entities. Such moves are often precursors to rescue money deals that hurt existing creditors.

The creditors are considering whether Dish’s asset transfersrun afoul of rules governing the company’s debt contracts, giving rise ...