Dish Creditors Weigh Legal Options Including Default Notice

  • Some creditors are examining possible technical defaults
  • Controversial asset moves frequently face litigation

A Dish Network authorized dealer in San Pablo, California.

Photographer: David Paul Morris/Bloomberg
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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 plummetedBloomberg Terminal — 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.