This chapter delves into the financial challenges faced by Altis France, a telecommunications and media conglomerate, as it aims to reduce debt and address investor worries stemming from a fraud investigation at a subsidiary. The discussion covers creditor apprehensions, market responses, asset evaluations, and legal considerations surrounding the company's restructuring efforts.
Listen now: https://go.reorg-research.com/reorg-special-podcast-altice-france
Altice France’s attempt to fix its capital structure through potential discounted buybacks is threatening to spiral out of control. The slide in the group’s unsecured bonds on the back of management’s likely intentionally bearish investor call galvanized investors into organizing, with two groups forming, raising the potential for creditor-on-creditor violence.
In the podcast, we discussed the market reaction after last week's earnings call and Reorg’s view on management’s guidance and Altice France’s valuation. We also explain how asset drop-downs are permitted under the terms of the bonds and the implications for creditors. Finally, we delve into the French restructuring regime and French director duties.