Altice International Faces Debt Default Allegations from Bondholders
Lenders claim Patrick Drahi's telecom group illicitly transferred collateral, impacting $9 billion in bonds.
Bondholders holding approximately $9 billion in Altice International debt have formally notified the company of an alleged default. The lenders claim that Patrick Drahi's telecom empire engaged in a series of intercompany transactions that improperly stripped away collateral securing the bonds.
Sources indicate that the bondholders' notice cites the alleged transfer of assets and collateral out of the U.S. entities that originally issued the debt. This action, according to the bondholders, violates the terms under which the debt was issued, thereby constituting a default. The specific nature of the intercompany deals and the assets involved remains a central point of contention.
Altice International, a significant player in the telecommunications sector, operates cable and mobile services in several European countries and Israel. The company has previously undertaken complex financial maneuvers, including asset sales and restructurings, to manage its substantial debt load. This latest challenge from bondholders raises significant concerns about the company's financial stability and its ability to meet its obligations.