An ad-hoc group of DISH bondholders organized by Milbank and Lazard has secured minimum thresholds of support necessary for a cooperation agreement between the holders to go effective, said a source familiar with the matter.

Under the co-op agreement, the group needed to line up 50% of DISH DBS unsecured notes, 50% of DISH DBS secured notes and 35% of DISH Network’s USD 3.5bn 11.75% senior secured notes backed by spectrum, the source continued. The co-op exceeds these levels and is expected to grow ahead of an end of Thursday deadline for funds to sign up.

The co-op agreement’s initial term runs until 26 April and contains extension provisions. As in the case of Carvana last year, creditors in the co-op can trade notes with other parties that agree to sign on.

Creditors have rallied against a deal put forward by Charlie Ergen’s EchoStar that moved away assets and wireless spectrum held at DISH Networks and its satellite TV subsidiary DISH DBS into new unrestricted subsidiaries.

Last week, DISH parent EchoStar launched a distressed exchange offer to allow four tranches of DBS unsecured notes due between 2024 and 2029 to exchange into new 10% senior secured notes due 2034 backed by assets EchoStar moved away from DBS into an unrestricted subsidiary.

EchoStar also launched a distressed exchange offer on 12 January, to allow holders of the 2025 and 2026 DISH Networks convertible notes to exchange into new 10% senior notes due 2030 secured by 20 MHZ of AWS-4 spectrum owned by DISH subsidiary DBSD Corp.

Creditors have increasingly formed co-ops in advance of negotiations with borrowers to prevent lender on lender violence.

EchoStar did not return a request for comment.