Optimum Owner Weighs Debt-for-Equity Handover to Creditors
Optimum Communications reported a $291.8 million second-quarter net loss as it considers giving control to Apollo, Oaktree and JPMorgan Chase.
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 revenue of $2 billion. The company is considering turning over control to its major creditors, Apollo, Oaktree and JPMorgan Chase, in a debt-for-equity restructuring.
Why it matters
Optimum is carrying about $26 billion in debt, including $6 billion due in 2027, and its share price has traded between 56 and 66 cents, prompting a New York Stock Exchange delisting notice. A restructuring would shift ownership away from controlling shareholder Patrick Drahi.
Optimum's share price has traded between 56 and 66 cents, below the NYSE's $1 threshold for 30 consecutive days, which triggered a delisting notice. The company's $26 billion debt load and the terms of any restructuring remain unresolved.
The players
Optimum Communications
A cable and internet provider serving Westchester, Rockland and Fairfield counties, with headquarters in Long Island City, that is weighing a debt-for-equity restructuring.
Patrick Drahi
The French telecommunications investor who holds a controlling interest in Optimum Communications and would lose control under a debt-for-equity deal.
Apollo
The private equity firm that is among Optimum's major creditors and under consideration to take control in a restructuring.
Oaktree
The investment firm that is among Optimum's major creditors and under consideration to take control in a restructuring.
JPMorgan Chase
The global bank that is among Optimum's major creditors and under consideration to take control in a restructuring.
The details
Optimum hired Adriana Rios Welton as general counsel and chief responsibility officer in early October, and Michael Olsen moved to senior executive counsel for capital transformation through the end of 2027. Activist investor Neil Subin raised his stake from 5.5% to 13.3%, and his entities bought shares on Oct. 26, now owning 21,777,316 shares.
Timeline
Oct. 1: Optimum named Adriana Rios Welton general counsel and chief responsibility officer.
Oct. 26: Subin's entities purchased Optimum stock, now owning 21,777,316 shares.
2027: $6 billion of Optimum debt is due to be paid.
End of 2027: Michael Olsen's senior executive counsel role runs through this date.
Corporate Finance Context
Optimum's possible handover to Apollo, Oaktree and JPMorgan Chase follows the pattern of creditor-led debt-for-equity restructurings used by leveraged cable and telecom operators facing refinancing pressure. The move would transfer control of a company carrying roughly $26 billion in debt away from its controlling shareholder.
Shareholders holding Optimum stock face the prospect of dilution or loss of control if a debt-for-equity deal proceeds, and the NYSE delisting notice signals the share price is below the exchange's listing threshold. Existing investors should watch for the restructuring terms, which have not yet been disclosed.
The takeaway
A debt-for-equity deal would hand control of Optimum to its creditors and dilute existing shareholders, so the final terms will determine who ultimately runs the company and what remains for current investors.
Further reading
For related coverage, explore Corporate Finance reporting on restructurings and creditor control.
Source note: This article includes information reported by Westfair Communications.
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