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.

The combination of satellite TV businesses DirecTV and Dish Network depends on a debt exchange that's being made more enticing, EchoStar says.

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

DirecTV intends to terminate its planned acquisition of Dish Network Corp. in 10 days if bondholders don’t agree to a debt exchange.Most Read from BloombergUnder Trump, Prepare for New US Transportation PrioritiesThe Leaf Blowers Will Not Go QuietlyNo Water by Year-End for This Zimbabwean City of 700,

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.