DirecTV/Dish merger has a problem as debt holders object to $1.6 billion loss

DirecTV's agreement to buy the Dish satellite and streaming TV business from EchoStar is facing opposition from Dish creditors who would be forced to take a loss on the value of their debt.

Dish creditors "plan to block a distressed exchange that's a key part of its tie-up with rival DirecTV, according to people familiar with the matter," Bloomberg reported today. "A group of steering committee investors has gained a blocking position in order to negotiate with the company, the people said.