Lenders holding about $9 billion in bonds have delivered a notice of default to Patrick Drahi’s telecom empire, Altice International, alleging the company breached its debt agreements.

The bondholder group claims Altice stripped away collateral through a series of intercompany loans and asset transfers, violating the covenants tied to the debt. Sources familiar with the matter say the company leveraged these internal arrangements to reallocate assets, leaving bondholders exposed.

In response, the investors are forming a new cooperation agreement to present a united front as they seek remedies for the alleged default. The newly formed coalition aims to negotiate with Altice or pursue legal action to recover the outstanding value of the bonds.

The dispute underscores the risks inherent in complex intercompany structures within the telecom sector, especially for companies with extensive cross‑border holdings. Analysts warn that such practices could erode investor confidence and prompt stricter regulatory scrutiny.