Altice close to deal to reduce €8.6bn debt

The Altice France group, parent company of the operator SFR, is close to an agreement with its creditors to reduce its debt by 8.6 billion euros to reach 15.5 billion euros, a source close to the matter told AFP, confirming press reports.

The agreement, the number and identity of whose signatories have not been disclosed, provides in return for creditors to enter Altice's capital, to the tune of 45% of the group's shares, according to the same source.

The group's debt, which amounted to 23.7 billion euros in the third quarter of 2024, will also see its payment deadlines pushed back to between 2028 and 2033. Other details of the draft agreement have not been specified.

These negotiations come after a long standoff with creditors that began in early 2024.

The group had then stated the objective of reducing its debt "well below" 4 times its gross operating surplus, while this ratio was 6.4. According to the terms of the agreement about to be concluded, this goal should be achieved.

In January, after proposals not accepted by creditors, Altice France made a new proposal on the reduction of its debt, which included in particular a payment of 2.6 billion euros to creditors.

Patrick Drahi's group, which has not been listed on the stock market since 2021, has been experiencing difficulties for several years, linked to the weight of its debt, a drop in the number of its SFR subscribers, and a corruption scandal involving the head of its Portuguese subsidiary and co-founder of the group.

With a stated objective of debt reduction in the 2024 financial year, the group has also divested itself of several of its subsidiaries and activities. In 2024, Altice sold its media business, which included BFM and RMC, its subsidiary Teads, specializing in online advertising, data centers, its shares in La Poste Mobile and its shares in the British telecommunications group BT.