According to reporting by the Financial Times, the French-Israeli billionaire has restructured ownership across several Altice entities, shifting valuable operating assets out of groups pledged to existing bondholders.

The moves come as Altice grapples with a heavy debt burden built up during years of leveraged expansion across Europe and the US.

The restructuring has infuriated some creditors, who argue that Drahi has effectively weakened their security while preserving optionality for himself. One investor cited by the Financial Times described the approach as “super aggressive… he’s just taken €5bn of value from creditors”.

Altice has more than €60bn in gross debt across its global operations, with Altice France accounting for a significant share. Last year, the French unit entered accelerated safeguard proceedings in Paris, a court-supervised process designed to renegotiate debt while avoiding formal insolvency. Since then, Drahi has been reshaping the group’s structure, including raising new private debt secured against ring-fenced assets.

These actions have had the effect of making some existing bonds structurally subordinated, reducing potential recoveries for holders if the company were to default. Bond prices linked to Altice entities have come under pressure as investors reassess their position in the capital structure.

For Drahi, the strategy appears aimed at buying time and maintaining strategic flexibility. By isolating higher-quality assets, Altice can continue to raise fresh financing while negotiations with creditors continue. Supporters argue this improves the group’s chances of long-term survival in a challenging telecoms market marked by intense competition and rising financing costs.

Creditors, however, are increasingly wary with some pushing for tighter covenants and greater transparency. Others, meanwhile, are exploring legal avenues to challenge the transfers. The dispute underscores the shifting balance of power between highly leveraged telecom operators and investors in Europe’s high-yield market.

With Altice also considering asset sales to reduce debt, including stakes in network and media businesses, the outcome of the standoff will have implications beyond Drahi’s group. It is being closely watched by lenders and operators alike as a test case for how far owners can go in protecting assets during complex telecoms restructurings.

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