Altice France Secures Debt Restructuring Approval, Paving the Way for Financial Flexibility
Altice France's debt restructuring plan approved, reducing debt by €8.5 billion and enhancing financial stability.
Key Points
- • Altice France's debt will decrease by €8.5 billion to €15.5 billion.
- • Creditor equity stake changes - 45% to creditors, 55% retained by Patrick Drahi.
- • Annual savings of €400 million in financial costs and delayed reimbursements until 2028.
- • Management emphasizes securing the company's future for employees and partners.
On August 4, 2025, the Paris Economic Activities Tribunal approved a crucial debt restructuring plan for Altice France, which will significantly alter the company's financial landscape. The restructuring will reduce Altice France's debt by €8.5 billion, bringing its total debt down to €15.5 billion. This substantial reduction is set to save the company €400 million annually in financial costs and defer major debt repayments until 2028, enhancing its liquidity and operational flexibility.
Under the terms of the agreement, major creditors—including prominent American investment firms like BlackRock, Pimco, and Fidelity—will receive a 45% equity stake in Altice France. In contrast, company founder Patrick Drahi retains a controlling 55% stake. Management expressed optimism about the restructuring, stating that it "secures the financial, industrial, and social future of Altice France-SFR." They emphasized that the approval is a significant step towards ensuring the entity’s sustainability and competitiveness in the telecom market.
The approval aligns with an earlier agreement signed with creditors in February, showcasing a structured approach to managing the company's financial distress. The implementation of the restructuring is expected to take place in September or October 2025, marking a transition that is anticipated to provide Altice with the necessary financial means to invest in growth and services.
Overall, this restructuring plan is seen as a vital move to stabilize Altice France's financial status and improve its operational prospects, acting as a protective measure for employees, clients, and partners alike, ensuring continuity in the company's services moving forward.