CommScope Faces $150 Million Lender Suit After $10.5 Billion Asset Sale
Updated
Updated · Bloomberg · May 12
CommScope Faces $150 Million Lender Suit After $10.5 Billion Asset Sale
1 articles · Updated · Bloomberg · May 12
$150 million or more is at stake in a New York state-court lawsuit accusing CommScope of breaching its debt agreement after a major divestiture.
Lenders say CommScope's January sale of its broadband connectivity and cable unit to Amphenol for $10.5 billion amounted to a sale of substantially all assets.
That classification, they argue, triggered an event of default under the debt terms and required CommScope to pay a premium to lenders, which they say it failed to do.
The case turns the January asset sale into a broader balance-sheet dispute, adding legal pressure as CommScope faces scrutiny over how the deal affected creditor protections.
Did CommScope's massive asset sale trigger a hidden default, putting its promised shareholder payout at risk?
After a $10.5B sale made it 'debt-free,' why is Vistance Networks facing a $150M lawsuit from its former lenders?