Optimum Communications Inc. is moving closer to a debt restructuring agreement with its lenders that would hand control of the telecommunications provider over to its creditors and resolve existing litigation, according to individuals familiar with the matter who spoke on condition of anonymity.
Controlling shareholder Patrick Drahi and the company’s lenders have been engaged in prolonged negotiations regarding the treatment of his equity stake in the newly restructured enterprise. Recent discussions have successfully narrowed the gap between Drahi’s initial demands and the concessions creditors were willing to offer. Establishing an agreed-upon framework for preferred shareholders, including Drahi, remains a critical component for finalizing a consensual arrangement.
While talks remain ongoing, a finalized deal could potentially be reached before the end of November. A representative for Optimum declined to comment on the negotiations.
Optimum’s long-running effort to reorganize its substantial debt stack has encountered numerous obstacles and disputes over the past year. In late 2025, the company accused its lenders of antitrust violations, alleging that a cooperation agreement signed by creditors to stick together during negotiations had blocked Optimum from accessing capital markets.
Tensions escalated further in June when Optimum warned creditors that forcing the company into bankruptcy could trigger more than $4 billion in tax liabilities, potentially inflicting severe damage on their financial recoveries.
Legal conflict intensified last month when creditors filed a lawsuit demanding that Optimum unwind asset transfers. The lenders claim these transactions siphoned corporate value away from their reach and into the pockets of company insiders. Among those named is Drahi, whose net worth is estimated at $6.7 billion.
Drahi currently owns approximately 28% of Class A shares in Optimum, which was formerly known as Altice USA. In addition, he holds 99.9% of the company’s Class B shares, giving him roughly 90.5% of the total voting power.
