Negotiations between Altice International and its creditors over restructuring the company's capital structure are nearing a Tuesday deadline, as a non-disclosure agreement is set to expire, according to people familiar with the matter. The company has been negotiating a revamp of its roughly €8 billion ($8.9 billion) debt pile with a group of lenders that sued it in New York earlier this month. The lenders allege that the firm, owned by billionaire Patrick Drahi, unlawfully shifted most of its assets out of their reach late last year.
The NDA could be extended beyond the deadline, some of the people said. The debt held by the litigation committee has been quoted at a premium compared with securities held by outside creditors, based on expectations that these lenders would secure better recoveries of their principal. However, if the parties fail to reach a deal or extend the NDA, Altice International will publish cleansing materials, financial information not previously public. That could compress the premium on negotiating lenders' debt, though others believe those creditors would still see relatively stronger recoveries.
The litigation committee leading talks includes Arini Capital Management, Diameter Capital Partners, Invesco Ltd., King Street Capital Management, Silver Point Capital, Sona Asset Management and Elliott Investment Management. While discussions have been constructive, the parties still need to bridge a gap over compensation for Drahi and the lenders. A similar sticking point arose in talks between Drahi and creditors of Optimum Communications Inc., formerly Altice USA, earlier this month, though those parties are closing in on an agreement.
Another issue under discussion is how to address a loan that Elliott provided last year to a holding company of Altice International to refinance more than €500 million of debt. The money repaid a loan with a relationship bank and made it easier to move some assets beyond creditors' reach, Bloomberg previously reported. Representatives for Altice International, the litco group and Elliott declined to comment.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing