Creditors Sue Patrick Drahi, Optimum Over Alleged Fraudulent Transfers
Lenders allege the telecom titan and certain managers improperly shifted billions of dollars of assets into a new entity as the company buckles under $21 billion in debt.
Creditors have filed a lawsuit accusing telecom magnate Patrick Drahi and other managers of improperly transferring billions of dollars in assets from the Dutch telecommunications company Altice International to a new entity. The lawsuit, filed in U.S. bankruptcy court, alleges these actions were fraudulent and occurred as Altice International, the parent of U.S. cable operator Optimum, faces a mounting debt of approximately $21 billion.
The legal filing claims that the alleged transfers were designed to shield assets from creditors as the company navigated its significant financial obligations. The creditors assert that the transactions occurred at a time when Altice International was experiencing financial distress.
Optimum, a major provider of internet, TV, and mobile services in the United States, is a key part of the assets held by Altice International. The company has been grappling with substantial debt levels, leading to concerns among its lenders about repayment. This lawsuit introduces a new layer of legal challenge to the company's financial restructuring efforts.