Optimum Communications, the U.S. broadband provider controlled by billionaire Patrick Drahi, is advancing preparations for a Chapter 11 bankruptcy filing that could arrive before the end of 2026. The filing would implement a restructuring agreement under discussion with creditors, transferring control of the company away from Drahi and addressing a debt burden of roughly $26 billion along with billions of dollars in maturities that approach in the near term, according to The Wall Street Journal. Optimum is the 5th largest provider of traditional Cable TV in the United States.
The company and its lenders have been negotiating the terms of a comprehensive deal that would cede equity ownership to a group of major creditors in a move that would turn over control of the company to them. Those parties include Apollo Global Management, Oaktree Capital Management, and JPMorgan Chase. The emerging agreement is also expected to resolve ongoing litigation between Optimum and its lenders, including disputes that have involved allegations of antitrust violations and claims of improper asset transfers.
Optimum operates as the American arm of Drahi’s broader Altice telecommunications holdings and was previously known as Altice USA. It provides cable television, internet, and related services primarily in the Northeast and other markets. The company has faced sustained pressure from a high debt load concentrated at its CSC Holdings subsidiary, where funded obligations have stood in the low $22 billion range, contributing to a consolidated total near or above $26 billion. Significant principal amounts come due in 2027, including large maturities scheduled for April of that year.
Earlier this year, Optimum pursued a series of internal reorganization steps intended to insulate certain valuable assets, including its East cable operations and a stake in the Lightpath fiber business, from the full weight of the CSC Holdings debt. Those moves included the creation of an unrestricted subsidiary and related equity transactions, and they coincided with continued talks aimed at a consensual restructuring. Creditors later filed suit alleging that certain transfers had improperly shifted assets beyond their reach while the company carried substantial debt.
The potential bankruptcy would serve as the vehicle to implement whatever final agreement the parties reach, allowing the capital structure to be reset under court supervision. Differences over the treatment of Drahi’s remaining equity interest and related preferred stakes have narrowed in recent weeks, improving the prospects for an orderly process rather than a contested one. No final decision on the precise timing or structure of any filing has been announced by the company, and negotiations remain ongoing with the possibility that terms could still change.
A successful restructuring would leave the reorganized broadband business under creditor ownership while addressing the maturity wall that has constrained the company’s options. The outcome would mark a significant shift for one of the larger remaining traditional cable operators in the United States as the industry continues to contend with cord-cutting, competition from fiber and wireless alternatives, and elevated leverage.
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