In this podcast, they discuss Altice France's massive capacity to designate subsidiaries as unrestricted, unique debt reduction strategies, complexities in insolvency scenarios, and potential pitfalls for management and investors. They also explore interplay within Altis entities, strategic management tactics, restructuring dynamics in French insolvency processes, and non-consensual financial processes for negotiation facilitation.
Read more
AI Summary
AI Chapters
Episode notes
auto_awesome
Podcast summary created with Snipd AI
Quick takeaways
Altise management strategically leveraged unrestricted subsidiaries to deleverage, presenting challenges for creditors.
The flexibility of Altise entities' builder baskets influences creditor negotiations and market reactions.
Deep dives
Altisse Management's Debt Market Shock
Altisse management surprised the debt market by forcing creditors to choose between taking a haircut on debt or risk losing proceeds from asset sales by Altisse France designated as unrestricted subsidiaries. This aggressive move by management aims to achieve deleveraging targets and shows a strategic approach to handling the debt situation.
Flexibility of Altisse International and Altisse France
Altisse International and Altisse France hold similar flexibility due to their builder baskets dating back to 2012 and 2014, respectively. Altisse management's ability to designate assets as unrestricted subsidiaries provides various options, including using proceeds for dividends, asset sales, or priming transactions, impacting creditor negotiations and leverage strategies.
Contemplating Contagion and Market Repercussions
The market speculates on potential contagion effects and demand for higher risk premium post-Altisse's actions. Observations on CLOs' approach to Triple C buckets and asset sales scenarios highlight potential market reactions. The focus shifts to evaluating connections between Altisse entities and implications on wider credit markets.
Insights on Potential Restructuring and Resolution Strategies
Discussion revolves around the likelihood of a holistic restructuring solution engaging all debts non-consensually. Assessment of potential resolution paths such as the Accelerated Safeguard Process and conciliation procedures in the French context provide insights into future negotiation dynamics and debt equity arrangements.
What do you get when a builder basket just keeps building, and building and building? You get a whole basketful of lenders caught off-guard by the massive amount of capacity that Altice France has to designate its subsidiaries as unrestricted, that’s what.
In this week’s episode of Cloud 9fin, editor Dan Alderson, senior legal consultants Chris Osbourne and Freddie Doust, and distressed credit analyst Nathan Mitchell walk through the knowns and unknowns of Altice.
The discussion covers some of the ways the Altice situation is both familiar and novel, nuances of the French jurisdiction, and the many potential pitfalls that management and investors could face along the path to deleveraging the Altice capital structure.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode