Creditors to Optimum Communications filed a New York state court lawsuit against the cable operator, its founder Patrick Drahi and certain company managers, alleging they orchestrated fraudulent transfers to move billions of dollars of assets beyond their reach.

The creditors alleged that Drahi and his associates, including former Optimum Chief Executive Dexter Goei, placed their own equity interests ahead of creditors by shifting the valuable fiber and cable assets even though the company was insolvent under a $21 billion debt load.

They also alleged that management then created a sham entity to issue lucrative preferred stock that further damaged the creditors' financial position.

The lawsuit underscores mounting pressure on the telecom titan as it buckles under $21 billion in debt, with lenders accusing Drahi and his inner circle of improperly shielding assets from creditors.