Altice (SFR) France - comment

Further speculation and press stories are emerging regarding Altice France.  It is rumoured that Altice France is exploring potential debt raising at unrestricted subsidiaries to meet upcoming maturities in January and February next year.  This possible deal, with funds not involved in the Altice France structure, would provide additional liquidity for the Company but doesn’t assist anyone in the main objective of reducing leverage.  It gives further time to the Company, with the short-dated maturities exiting at par, but it is still essentially replacing debt with more debt.  Those creditors at the longer end of the maturity will be more incentivised to negotiate.   The strength, or otherwise, of the “cooperation agreement” between creditors will be tested.  Creditors involved in this agreement have until Monday to extend the deal beyond February.