Creditors to US satellite television firm Dish Network 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.

The deal, which is subject to regulatory approval, would create one of the largest pay-TV distributors in the U.S. The companies were blocked in an attempt to merge in 2002.

DirecTV agreed to buy the Dish satellite TV and Sling TV business for a nominal fee of $1, in exchange for taking on $9.75 billion of Dish debt. But DirecTV's deal announcement on Monday said the merger needs approval from Dish debt holders, who would see their investments devalued.

Charlie Ergen’s decades-long dream to combine his satellite-TV company Dish Network Corp. with rival DirecTV hinges on the willingness of creditors he has irked in the past to write off part of their investment in the heavily indebted company.