Patrick Drahi has restructured Altice International’s debt landscape by removing its two most valuable operations-Altice Portugal (formerly PT) and Altice Caribbean—from the pool of assets pledged to creditors. Together representing around 80% of Altice International’s results, these businesses have now been reclassified as “unrestricted subsidiaries,” freeing them from existing credit agreements.
Until now, creditors holding over €8 billion in Altice International securities were secured by these assets. With the new designation, the subsidiaries can raise debt, sell assets, or pay dividends without creditor approval. The impact was immediate: one Altice Portugal unit secured €750 million in financing to help pay parent-company obligations and support working capital. The company also flagged the potential to raise an additional €2 billion through Altice Portugal.
The market reacted sharply. On Monday, two Altice International subordinated bonds sank by about 35 cents—to 16 and 19 cents—marking their largest single-day drop. Analysts called the maneuver a decisive hit: Drahi “squeezed five billion euros worth of money out of creditors,” one investor told the Financial Times. CreditSights noted the move effectively removed 80% of group EBITDA from creditor reach, leaving lenders in a “weak position.”
Drahi’s telecom empire, built through heavily leveraged acquisitions, has been under strain as rising interest rates complicate repayment obligations. Tensions with creditors have intensified across the group: Altice USA recently sued lenders holding the majority of its $26 billion debt, accusing them of collusion, while Altice France only narrowly avoided asset transfers after agreeing to a €24 billion restructuring that handed creditors 45% of the company.
Now, Altice International has launched a “strategic review” of its portfolio, signaling potential divestments to increase financial flexibility. After selling the Covilhã data center for €120 million, reports suggest Drahi may once again explore a sale of Altice Portugal—an asset Saudi Arabia’s STC came close to acquiring last year but failed due to price disagreements.
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