Debt Swap Could Shift Control of Cable Operator
Vendors and partners of Optimum Communications face new counterparty risk if creditors take over the company.
Updated on Nov. 2, 2026 in Corporate Finance
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Optimum Communications posted a net loss attributable to shareholders of $291.8 million in the second quarter on $2 billion in revenue, and is considering handing control to major creditors Apollo, Oaktree, and JPMorgan Chase in a debt-for-equity restructuring. For cable and internet operators and their suppliers, the outcome could reshape a major competitor's ownership and capital structure.
Why it matters
The company is carrying about $26 billion in debt, including $6 billion due in 2027, and its shares have traded between 56 and 66 cents, triggering a New York Stock Exchange delisting notice. A debt-for-equity swap would transfer control from Patrick Drahi to creditors, a shift that can change how a regional broadband provider prices, invests, and negotiates with its vendors.
The company reported a $291.8 million net loss attributable to shareholders on $2 billion of second-quarter revenue, against roughly $26 billion of total debt. Its share price has held between 56 and 66 cents, well below the NYSE's $1 minimum, which triggered a delisting notice after 30 consecutive days.
The players
Optimum Communications
A cable and broadband provider serving the New York metropolitan area, including Westchester, Rockland, and Fairfield, with headquarters in Long Island City.
Apollo
A global alternative asset manager that is one of the major creditors weighing a debt-for-equity deal with Optimum.
Oaktree
A credit-focused investment firm that is among the major creditors considering taking control of Optimum in a restructuring.
JPMorgan Chase
The largest U.S. bank by assets, acting as one of Optimum's major creditors in the possible restructuring.
Neil Subin
An activist investor whose entities have increased their Optimum stake to 13.3% with an eye on board representation.
The details
Under a debt-for-equity restructuring, creditors exchange debt claims for ownership stakes, so the company's equity base changes hands rather than being repaid in cash. News reports indicate Patrick Drahi, who holds a controlling interest, would lose control in such a deal. Separately, activist investor Neil Subin's entities now own 21,777,316 shares, a 13.3% stake up from 5.5%, with an eye on capturing board seats. The company also hired Adriana Rios Welton as general counsel and chief responsibility officer, and Michael Olsen moved to senior executive counsel for capital transformation.
Timeline
Oct. 1: Optimum named Adriana Rios Welton general counsel and chief responsibility officer.
Oct. 26: Subin's entities bought Optimum stock, bringing their holdings to 21,777,316 shares.
2027: $6 billion of Optimum debt comes due.
End of 2027: Olsen's senior executive counsel role runs through this date.
Market Landscape
Debt-for-equity restructurings, in which lenders take ownership of a leveraged company in exchange for canceling debt, are a recognized route for heavily indebted firms facing maturities they cannot refinance. Optimum's situation fits that pattern, with a $6 billion maturity in 2027 and a share price that has fallen below the NYSE's $1 continued-listing standard.
Vendors and business partners of leveraged telecom and cable companies should monitor counterparty credit risk, since payment terms and contract stability can shift during a restructuring. Operators should consult qualified counsel or an accountant before adjusting receivables exposure or contract terms with any distressed counterparty.
The takeaway
Restructurings like this can change a supplier's counterparty overnight, so businesses that sell to leveraged firms should review payment terms and concentration risk. Track the company's next quarterly filing and any NYSE compliance update to see whether a deal advances.
Further reading
For more on how companies handle heavy debt loads, explore Corporate Finance coverage.
Source note: This article includes information reported by Westfair Communications.
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