EchoStar’s share price has plummeted 13 per cent as news emerged that TPG (the former Texas Pacific Group) has said that the acquisition by DirecTV of EchoStar’s pay-TV assets was at risk because of EchoStar/Dish bond-holders who were holding out over the terms of a debt exchange offer.

There are multiple reports that Dish bondholders owed some $10 billion rejected a proposed exchange deal. In a letter, the bond holders accused Dish co-founder and EchoStar chairman Charlie Ergen of “brazen conduct” and have already filed a legal complaint against him.

A group of Dish bondholders on November 11th had rejected the proposed debt-exchange offer from DirecTV that was contingent upon them accepting a “haircut” of $1.5 billion. “A successful exchange was a condition for acquiring the Dish video business,” says DirecTV. DirecTV has set midnight November 22 as a deadline for acceptance of else it will pull the plug on the deal.

DirecTV has made it clear that it will not improve its offered terms. TPG was paying just a nominal $1 for the assets and assuming about $10 billion of Dish debt.

Analysts at MoffettNathanson, in a note to clients, said the simplest path to a resolution would be for TPG to sweeten the deal, but that doesn’t seem likely when the satellite TV business is unravelling.

November 12th saw EchoStar issue its Q3 results which were not good. The broadcaster ended the quarter with 8.03 million subcribers (including those from Sling TV) and revenue of $3.89 billion (down 5 per cent). Sling TV was a bright spot for management with subs increasing by 145,000 compared to a growth of 117,000 in the same year-ago quarter. Net pay TV subscribers fell approximately 43,000, and the company ended the quarter with 8.03 million pay-TV subscribers and 5.89 million Dish TV subscribers and 2.14 million Sling TV subscribers.