Optimum Communications, formerly Altice USA, is preparing for a potential Chapter 11 filing as part of a deal that would transfer control to its lenders. The restructuring is intended to address the company’s significant debt. Its subsidiary, CSC Holdings, carries nearly $22 billion in debt, including approximately $6.2 billion maturing in 2027.
The proposed deal would transfer equity in the broadband provider to key lenders, including Apollo Global Management, Oaktree Capital Management, and JPMorgan Chase. Optimum’s controlling shareholder, Patrick Drahi, and creditors are still negotiating his stake in the reorganized company, though the gap between their positions has reportedly narrowed.
The talks follow escalating tensions, including lawsuits between Optimum and its lenders over alleged anti-competitive behavior and fraudulent asset transfers.