EchoStar stock plunged 13% Tuesday on the news that bondholders of subsidiary Dish Network rejected a proposed debt deal seen as key to sealing a merger with satellite rival DirecTV. Shares fell to $22.

DirecTV said it will abandon a plan to buy its satellite television rival after some bondholders refused to accept a steep discount on Dish parent EchoStar’s debt.

A group of creditors associated with Echostar's pay television service Dish Network have rejected a bond exchange offer from the company. This article, Dish creditors reject bond exchange, raising questions about DirecTV acquisition,

The deal between the rival satellite TV giants for $1 and $9.75 billion in debt is contingent upon Dish's bondholders agreeing to a debt exchange

“A successful exchange was a condition for acquiring the Dish video business,” a DirecTV spokesperson said in an emailed statement to Bloomberg. “Given the outcome of the EchoStar exchange, DirecTV will have no choice but to terminate the acquisition of Dish by midnight on Nov. 22.”

Dish Network Corp. creditors have rejected the US satellite-television provider’s bond-exchange offer on the eve of a deadline for a debt deal that is key to the company’s proposed acquisition by rival DirecTV.