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Dish Network is in talks with investors to settle the lawsuit
Massachusetts

Dish Network is in talks with investors to settle the lawsuit

(Bloomberg) — Dish Network Corp., the troubled satellite television provider with more than $20 billion in debt, is negotiating with a group of creditors to settle a lawsuit related to a controversial asset transfer.

A meeting between the company and investors represented by Lazard Inc. and Milbank could take place as early as this week, say people familiar with the matter who asked not to be identified because they were not authorized to speak about it.

Confidential negotiations also reportedly include the possible extension of a $2 billion bond issued by Dish DBS due on November 15. The bond last traded at 97.2 cents on the dollar on Thursday, according to data compiled by Bloomberg.

Messages left with Milbank, Dish and its legal counsel White & Case were not returned. Representatives for Lazard and Houlihan Lokey Inc., the company’s financial adviser, declined to comment.

A group of creditors sued Dish in April, demanding the reversal of a series of collateral transfers the company made earlier this year to put assets out of the reach of bondholders. Dish, which is seeking to shift from pay-TV to wireless services, had transferred a handful of wireless spectrum licenses to a new legal structure and released a new entity with 3 million television subscribers from debt obligations as part of its efforts to reduce its debt mountain.

In recent months, holders of Dish’s convertible notes have offered to provide new financing that would be secured by some of those assets, and talks are ongoing.

(Updated with bond trading price in third paragraph.)

For more articles like this, visit bloomberg.com

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