(Bloomberg) — A group of Altice USA Inc.’s lenders are preparing to sign a cooperation agreement, a pact aimed at preventing a creditor fight, amid concerns the troubled company could move assets beyond their reach, according to people familiar with the matter.
Most read articles on Bloomberg
The agreement, which would last for an initial 18 months and could be extended multiple times, could take effect as soon as this week, said the people, who asked not to be identified discussing private matters. Terms and timing are subject to change and the lenders may not ultimately reach an agreement.
Some creditors who hold much of the company’s debt have retained PJT Partners and Akin Gump Strauss Hauer & Feld to advise them amid growing concerns that Altice USA will seek to restructure its debt, Bloomberg News reported earlier.
Representatives for Altice USA and Aiken did not immediately respond to requests for comment, while a representative for PJT declined to comment.
Existing creditors are concerned that Altice USA, which has about $25 billion in consolidated debt, may try to shift assets, which could reduce the value of the collateral backing the debt.
Altice USA is one of three silos in Patrick Drahi’s communications and media business, the other two being Altice France, which controls French mobile phone operators SFR and Altice Media, and Altice International.
Most of Altice France’s creditors are divided into separate groups and have cooperation agreements to prevent disputes. These agreements mean that individual creditors cannot accept any agreements on their own, but must follow whatever action the majority of creditors agree to.
Most read articles on Bloomberg Businessweek
©2024 Bloomberg LP
