Creditors including Apollo Global Management and Oaktree Capital have filed a lawsuit against Patrick Drahi, accusing the French billionaire of being personally liable for a “brazen” debt restructuring at his U.S. telco, Optimum Communications (formerly Altice USA). The bondholders claim Optimum is insolvent due to Drahi’s “Altice Way” strategy and allege he moved valuable Cablevision assets into an unrestricted holdco to shield them from creditors. In June, Optimum created that holdco, raising $3 bn in senior debt from JPMorgan Chase and $300 mn in junior preferred equity from outside investors.

The suit, filed in a New York State court, is the latest clash in a broader battle over control of the distressed pay‑TV operator, which carries over $20 bn of debt, including $6 bn of bonds due in 2027. Altice separately sued the bondholder group, alleging an illegal cartel, while the creditors deny the claims. The case highlights creditor‑on‑creditor disputes, the role of major banks like JPMorgan, and potential precedents for future distressed debt negotiations.

Optimum and JPMorgan have not responded, calling the allegations meritless.