Total debts and liabilities at Altice France amount to about EUR 17bn - FT

Total debts and liabilities at Altice France amount to about EUR 17bn - FT

Altice France’s Debt Burden and Restructuring Challenges

Altice France, the French arm of the multinational telecoms group, faces significant financial pressures, with total liabilities estimated at approximately €17 billion, according to recent reports. This figure reflects years of leveraged expansion under founder Patrick Drahi, who has restructured the company’s operations to prioritize strategic flexibility amid mounting debt.

The debt load has prompted ongoing efforts to reorganize the business. In 2024, Altice France entered accelerated safeguard proceedings in Paris, a court-supervised process aimed at renegotiating obligations while avoiding formal insolvency. Concurrently, Drahi has shifted valuable operating assets into ring-fenced entities, a move critics argue weakens creditor security by structurally subordinating existing bonds. One investor described the strategy as "super aggressive", estimating it has extracted €5 billion in value from creditors.

To address its obligations, Altice France is exploring asset sales, including stakes in network and media businesses. Reports suggest XpFibre, a fiber-optic infrastructure unit, is among potential targets. These measures aim to reduce debt while maintaining operational resilience in a competitive telecoms market. However, creditors remain wary, with some pursuing legal challenges to contest asset transfers and demanding tighter covenants for new financing.

The restructuring has broader implications for Europe’s high-yield market, testing the boundaries of owner protections during complex telecom restructurings. Bouygues, Iliad, and Orange recently submitted a €17 billion bid for a majority stake in Altice France, signaling potential shifts in ownership.

Drahi’s approach—prioritizing long-term survival through aggressive debt management—has drawn both criticism and cautious support. While detractors highlight risks to creditor recoveries, proponents argue the strategy enhances the group's adaptability in a challenging sector. As negotiations continue, the outcome will likely influence lending dynamics and restructuring frameworks across the telecom industry.