Dish Debt Exchange Standoff Threatens to Thwart DirecTV Deal (1)

Just days before a key deadline linked to the proposed tie-up between Dish Network and DirecTV, talks with creditors have devolved into a dispute that threatens to upend the almost $10 billion deal.

At the crux of the row is a distressed exchange that would force bondholders to take a nearly $1.6 billion loss. Creditors say the proposal is “unworkable” and want to be paid back in full; DirecTV is threatening to walk away entirely if there’s no agreement on the exchange by Oct. 29.

Dish and DirecTV agreed to merge last month to create the largest US pay-TV ...