Altice SFR France - comment

We were expecting an announcement this morning from the Company confirming a proposed deal between creditors and the Company. Some details are emerging from the creditor group including c.10% in cash, a write-down of 13-14% in debt in exchange for c. 30% of the equity. The devil will be in the details, but it will be favourable to investors if XpFibre is returned to the restricted group.  However, we remain cautious due to the lack of operational forecasts in previous cleansing statements. The reality is that Altice France will remain leveraged post-deal in a challenging operational environment.