EchoStar’s highly contentious plans to raise cash by issuing and restructuring its debts, which received significant objections from creditors, has been abandoned.

It is the second time in two weeks that Dish Network’s parent EchoStar has scrapped a controversial proposal to restructure debt after creditor backlash.

The satellite TV provider announced on February 12th the termination of offers to exchange more than $4.9 billion (€4.5bn) of convertible notes issued by Dish. The proposed exchange would have swapped notes due in 2025 and 2026 for new senior secured notes due 2030. The offer did not receive enough participation from existing noteholders, according to a statement from EchoStar.

EchoStar said the initial proposal was conditioned upon, among other things, at least a majority of the outstanding principal amounts being acceptable to debtholders.

“As of the Expiration Date, holders of the Existing Notes had not tendered sufficient Existing Notes to meet the Minimum Tender Condition with respect to either exchange offer. Accordingly, EchoStar terminated the exchange offers and consent solicitations following the Expiration Date,” stated EchoStar.

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Tags: Dish Network, Echostar