PARIS (Reuters) – Altice France is preparing to sign an agreement with its creditors to reduce the telecoms group’s debt in exchange for a minority stake in the company, two sources close to the matter told Reuters on Tuesday, confirming reports from Bloomberg and Le Figaro.
One of the sources said the agreement will involve a debt reduction of 8.6 billion euros ($9 billion), bringing consolidated net debt to 15.5 billion euros. Creditors will receive a 45% stake in total, including 31% for secured creditors.
“(Founder) Patrick Drahi manages to retain control after a year-long battle,” said the source.
Altice France declined to comment.
Bloomberg reported that the agreement will include changes in governance.
The agreement has yet to be signed but is expected to be signed shortly, the two sources said.
Altice, still headed by Drahi, has been in talks with its creditors for months in an effort to reduce its debt. Last March it sold French TV news channel BFM to Marseille-based shipping company CMA CGM for an enterprise value of 1.55 billion euros ($1.63 billion).
($1 = 0.952 euros)
(Reporting by Florence Loeve; Writing by GV De Clercq; Editing by David Goodman)
