Optimum Shifts Assets Beyond Lenders’ Reach, Pushing Debt Feud to the Brink

1 articles · Updated · Bloomberg · Jun 2

Optimum Communications announced a new transaction Monday that moves more assets beyond the reach of Apollo, Ares, BlackRock and other lenders, sharply escalating its debt fight.
The shift tightens pressure on the lenders’ co-operation group, which now faces a choice between holding out and risking a bankruptcy that could deliver lower recoveries, or cutting a deal it has resisted.
Patrick Drahi’s company is already suing the lender group on antitrust grounds, making the latest asset move another step in one of distressed debt’s most acrimonious standoffs.
The maneuver deepens a broader restructuring battle over how much leverage aggressive borrowers can exert by moving collateral away from creditors during debt negotiations.

With borrowers and lenders at war, will this legal fight permanently alter the rules of corporate debt?

Is Patrick Drahi's high-risk playbook a brilliant maneuver or a final gamble for his communications empire?

As a billionaire shifts assets to safety, who ultimately pays for Optimum's massive $25 billion debt pile?