Patrick Drahi’s Altice International faces accusations of debt default from its bondholders. Lenders holding approximately $9 billion in bonds claim the telecom company stripped away collateral through intercompany deals, sources reported.
The bondholders issued a formal default notice over these asset shifts. They allege that Altice International moved valuable assets without proper lender consent, weakening the security backing their investments.
The dispute centers on transactions between Altice entities. These intercompany deals allegedly transferred collateral away from the bondholders’ reach, reducing the value of their claims.
Altice International has not publicly commented on the allegations. The company operates a vast telecom network across Europe and Israel, controlling major cable and mobile providers.
Patrick Drahi founded Altice through a series of aggressive acquisitions. His empire now spans multiple countries, with significant debt loads tied to various subsidiaries.
This default notice marks a new chapter in Altice’s financial challenges. The company has faced previous struggles with high leverage and restructuring efforts.
The outcome could affect broader telecom markets. Investors are watching closely as legal and financial implications unfold for one of Europe’s largest telecom groups.
