Altice International's Debt Restructuring Dynamics and Creditor Power Shifts

The telecom sector's complex interplay of debt, asset liquidity, and creditor influence has never been more evident than in the case of Altice International. As the company navigates a €24 billion debt restructuring and strategic asset divestitures, the role of junior creditors and their advisory alliances-particularly with firms like Jefferies and Milbank-has emerged as a pivotal force shaping outcomes. This analysis examines the strategic and financial implications of these dynamics, focusing on how power shifts among creditor tiers and advisory strategies are redefining the trajectory of Altice's distressed telecom assets.

The Altice France Restructuring: A Blueprint for Survival

In October 2025, Altice France executed a landmark debt restructuring that reduced its net debt by €8.6 billion, extending maturities from 2025 to 2028 and stabilizing its financial position. This maneuver, facilitated through an accelerated safeguard proceeding in France, involved over 180 senior secured creditors and legal teams from Mayer Brown, Ropes & Gray, and NautaDutilh. According to Mayer Brown, the restructuring not only preserved services for 50 million French customers but also repositioned the company to pursue long-term strategic opportunities.

However, the success of this restructuring hinged on the coordinated efforts of junior creditors, who engaged Jefferies and Milbank to negotiate terms that balanced debt reduction with asset preservation. For instance, Milbank advised an ad hoc group of senior noteholders, securing a 2.5% cash payout at closing and 20% of reinstated senior notes due 2033, alongside equity stakes in a new subsidiary. This outcome underscored a critical power shift: structurally subordinated creditors, typically at a disadvantage, secured favorable terms through strategic legal and financial counsel.

Junior Creditor Activism: Jefferies and Milbank's Strategic Leverage

Junior creditors, including GoldenTree Asset Management and CastleKnight Management LP, have leveraged advisory alliances to amplify their influence. Jefferies, in particular, adopted a defensive strategy to prevent Altice from exploiting fragmented creditor groups. By uniting junior creditors under cooperation agreements, Jefferies mitigated the risk of a "divide and conquer" approach, ensuring a unified front during negotiations. This strategy proved instrumental in securing a 45% equity stake in Groupe Altice for creditors, while existing shareholders retained 55%.

Milbank's role further illustrates the strategic value of legal expertise. The firm's negotiation of contingent value rights and equity allocations for SUNs not only diversified creditor returns but also reinforced Altice's post-restructuring stability. According to Milbank, these terms positioned junior creditors to benefit from both immediate cash flows and long-term value creation, a rare alignment in distressed scenarios.

Power Shifts and Their Implications for Telecom Assets

The restructuring has also reshaped power dynamics among creditor tiers. Traditionally, senior creditors dominate negotiations, but Altice's case highlights how junior creditors-armed with robust advisory support-can secure disproportionate influence. For example, the SUNs' 45% equity stake and extended debt maturities reflect a departure from conventional hierarchies, where junior stakeholders often face dilution or exclusion.

These shifts directly impact Altice's telecom asset sales. While the company has successfully divested assets like the video advertising platform Teads and Israeli mobile operator HOT, it remains challenged by stalled bids for Portuguese infrastructure and Dominican Republic units. The restructuring's emphasis on debt extension over immediate asset liquidation suggests a strategic pivot toward preserving core operations, potentially deterring opportunistic bids for non-core assets.

Strategic Lessons for Distressed Telecom Restructurings

Altice's experience offers broader insights for the telecom sector. First, the success of junior creditor activism underscores the importance of advisory alliances in distressed scenarios. Firms like Jefferies and Milbank have demonstrated that coordinated creditor action can yield outcomes that transcend traditional power structures. Second, the restructuring highlights the value of cross-border legal frameworks in managing complex liabilities-a critical consideration for multinational telecom firms.

For investors, the key takeaway lies in the interplay between creditor coordination and asset strategy. Altice's ability to reduce debt while maintaining service continuity illustrates that even highly leveraged telecom companies can navigate distress without catastrophic operational disruption. However, the stalled asset sales also caution against overestimating market appetite for distressed telecom properties in a high-interest-rate environment.

Conclusion

Altice International's debt restructuring represents a masterclass in balancing creditor interests, strategic advisory input, and asset management. The active role of junior creditors, guided by Jefferies and Milbank, has not only reshaped the company's capital structure but also redefined power dynamics in telecom distress scenarios. As the sector grapples with rising debt burdens and regulatory pressures, Altice's case serves as a blueprint for leveraging creditor activism and advisory expertise to secure sustainable outcomes.