Patrick Drahi in financial crisis: billions in debt and bankruptcy risk
Massive debts of $16.3 billion threaten the collapse of the American cable giant Optimum (formerly Altice). Following an S&P credit rating downgrade, experts are forecasting a potential bankruptcy filing within the year.
Against the backdrop of a heavy debt burden and a deep crisis in the US cable television and internet industry, one of the country's largest telecommunications companies is facing a real danger of collapse.
Optimum (formerly Altice), controlled by Israeli businessman Patrick Drahi and a leading provider of communication and high-speed internet services in the US, is dealing with an extreme debt burden that could lead it to file for creditor protection (Chapter 11) as early as the coming year.
According to US reports, the company is required to repay massive debts in the near future: $6.3 billion in 2027, $6.2 billion in 2028, and an additional $3.8 billion in 2029. However, filings with the US Securities and Exchange Commission (SEC) indicate that the company lacks sufficient liquid cash, projected cash flows, or guaranteed financing to meet these obligations upon maturity.
This complex financial situation led the international rating agency S&P Global to downgrade Optimum's credit rating from "CCC+" to "CCC". This low rating signals a significant risk of default, and the agency estimates that the company will file for bankruptcy within a year.
At the same time, a report filed with the SEC in June shows that the company has executed several transactions aimed at protecting and maximizing stakeholder value. An analysis by ION Analytics suggests that founder and controlling shareholder Patrick Drahi is acting to protect the company's interests by moving assets out of the reach of lenders.
Optimum's difficulties are not an isolated event but part of a broader trend reflecting the deep crisis currently plaguing the entire cable industry. The pressure stems, in part, from a sharp decline in cable television viewership over the last five years. These challenges have already led companies like DISH and Sling TV to declare bankruptcy last June.
Drahi is not standing idly by; according to reports from the US, several steps have already been taken to stabilize the company's position—including internal reorganization and the consolidation of the Optimum East arm—as part of preparations for a potential bankruptcy filing.
