The proposed merger between Dish Network and DirecTV has hit another roadblock as creditors prepare to reject the satellite TV provider's revised bond exchange offer. This latest development throws the future of the deal into further uncertainty, according to a Bloomberg report.

Unacceptable Offer:

A group of steering committee investors representing creditors holding $8.9 billion of Dish bonds deem the revised offer inadequate, according to people familiar with the matter. The offer, which would reduce minimum losses on the bonds by $70 million to $1.5 billion, is still considered unacceptable.

Counter Proposal and Stalemate:

Bondholders have countered with a proposal that would result in a $300 million loss, indicating some room for negotiation. However, with the acceptance deadline of November 12th rapidly approaching, the two sides remain at an impasse. As of October 28th, only a small minority of notes had been tendered in support of the exchange offer.

Ongoing Battle:

Since the merger announcement on September 30th, Dish and DirecTV have faced resistance from bondholders who argue that the deal unfairly benefits shareholders at the expense of creditors. Previous exchanges between bondholder representatives and DirecTV's lawyers have failed to yield a resolution.

DirecTV's Stance:

DirecTV has reportedly rejected earlier offers from bondholders and threatened to walk away from the acquisition if an agreement on the bond exchange is not reached.

Seeking Comment:

Representatives for DirecTV, TPG Inc., Ropes & Gray, Milbank, Lazard, Houlihan Lokey Inc., and White & Case either did not respond or declined to comment on the ongoing negotiations.

Implications for the Merger:

The rejection of the revised bond exchange offer casts a shadow over the proposed merger, which aims to create the largest pay-TV provider in the U.S. The deal was seen as a strategic move to bolster both companies' competitiveness in a media landscape increasingly dominated by streaming services.

Next Steps:

With the deadline looming, it remains to be seen whether Dish and its creditors can bridge the gap and reach a compromise. The outcome of this standoff will have significant implications for the future of the pay-TV industry and the millions of customers it serves.