Altice France close to debt reduction agreement with creditors who guarantee 45% of capital

The deal is expected to involve a debt reduction of 8.6 billion euros, which would bring the consolidated net debt down to 15.5 billion. Creditors will receive a total of 45% of the capital, with 31% going to secured creditors.

Altice France is close to finalizing a deal with its creditors aimed at reducing the telecoms group's debt in exchange for a minority stake in the company, according to sources close to the process, as reported by Reuters.

The deal is expected to involve a debt reduction of 8.6 billion euros ($9 billion), which would bring consolidated net debt down to 15.5 billion euros. Creditors will receive a total of 45% of the capital, with 31% going to secured creditors.

Despite the significant changes, founder Patrick Drahi is expected to retain control of the company after a lengthy negotiation process. Bloomberg also reported that the deal is expected to include changes to governance structures.

Although the agreement is still pending signature, it is expected to be finalized soon.

Altice has been in discussions with creditors in recent months to address its financial challenges. In March, the company sold French news channel BFM to CMA CGM for an enterprise value of 1.55 billion euros ($1.63 billion). Altice remains under the leadership of Patrick Drahi.