Dish and Directv came together to improve the initial debt swap offer to these bondholders, but they still aren’t onboard.

All’s not well with the merger between Dish and Directv. The two companies are working toward a deal that would see them combine into the largest pay-tv company in the United States, but an intransigent group of Dish bondholders is making trouble for the distributors. These investors are being asked to take less for their Dish bonds than promised at their issuing, and they have rejected a new offer from the two satellite firms to try to assuage them.

Key Details: A letter from a steering committee representing the group says “roundly” rejected a new offer from Directv and Dish. The original offer from Dish and Directv has already been sweetened, to no avail. The group says Dish co-founder Charlie Ergen diverted billions of dollars from Dish subsidiary Dbs improperly.