Dish-DirecTV Deal Sparks Creditor Revolt Over $1.6 Billion Loss

Creditors to US satellite television firm Dish Network plan to block a distressed exchange that’s a key part of its tie-up with rival DirecTV, according to people familiar with the matter.

A group of steering committee investors has gained a blocking position in order to negotiate with the company, the people said. They may even explore a better outcome through litigation, said some of the people.

Creditors are banding together after Dish and DirecTV agreed on Monday to create the biggest US pay-TV provider under the control of private equity firm TPG. Before the plan can go ahead, Dish needs ...