Gilat Satellite Networks (Nasdaq:GILTF) bondholders are apparently unwilling to replace their bonds with shares, TheMarker has learned.

Certain bondholders are spearheading moves to create a united front against the management. The bondholders have recruited accountant Yitzhak Swary as their representative.

Instead of converting the bonds directly into shares, Gilat which is feared to be unable to meet its $350 million due payments to debt holders proposes to pay through a combination of cash, deferred bonds, plus stock options.

Each nominal dollar in bonds would receive 15¢ cash, plus one 35-cent deferred 2-year bond, plus options to buy Gilat stock.

Previously Gilat had proposed to exchange each three bonds for one shares.

The talks between bond-holders and the company's management have picked up momentum in recent days, TheMarker has learned. Gilat wants to reach an arrangement before September 15, which is the closest day of payment.

This restructuring move is why the company has put off publishing its second-quarter financial statements, to the second week of September.

The bond-holders are also demanding that Gilat reach a comprehensive arrangement to handle its debts, including the $134 million that it owes to the banks.