Echostar Restructuring Paves Way to Revive Possible DirecTV Deal

Echostar Corp. has reached a restructuring agreement with a majority of creditors in its Dish DBS unit, which would potentially pave the way to revive an M&A deal with DirecTV.

The agreement calls for the repayment of $1.6 billion of term loans and preferred membership interests, and may be implemented through an out-of-court process or a Chapter 11, according to thedeal made public in a filing Thursday.

It would also give financial flexibility to engage in a potential M&A transaction, which could include a deal to combine assets with rival DirecTV, EchoStar said. Negotiations for the tie-up ...