Milbank Completes Landmark European Restructuring of the Altice France Group

The Altice group (“Altice”) has completed its landmark European restructuring of c. €25 billion of debt of Altice France S.A. and Altice France Holdings S.A. (“AFH”). Milbank LLP advised an ad hoc group of holders of senior notes (the “SUNs”) issued by AFH which account for c. €4.4 billion of the group’s debt.

Following high levels of creditor support for the AFH restructuring, the transaction was implemented consensually via an exchange of the existing notes for a cash payment of 2.5% of principal on closing, with an extra 2.5% paid to noteholders who signed up to the framework agreement for the transaction by the relevant early deadline. Participating holders received 20% of their existing notes in reinstated 10% senior notes due 2033 issued by a new subsidiary of AFH (“New Issuer”), a pro rata proportion of 14% of the New Issuer’s equity, and contingent value rights issued by AFH. 

This represents a significant result for the holders of the SUNs given their structurally subordinated position in a large and complex debt structure. Lead partner Nicholas Dunstone, said "Milbank is very pleased to have assisted the SUN holders achieve this outcome following many months of negotiation with the stakeholders and navigating the structural and implementation challenges that come with such a significant restructuring. The SUNs are well positioned to benefit from a more stable and sustainable debt structure going forward, are well protected by the terms of the new notes and have the opportunity to realise returns from a more diversified set of instruments issued by the group."

The Milbank team was led by Financial Restructuring partner Nicholas Dunstone, with Yushan Ng and Sinjini Saha. The team also included special counsel Suzanne Thomson and Nick Berkeley and associates Diana Dai, Ryan Edge and Joseph Clarke.

Milbank LLP was lead counsel to the SUNs and worked with Wilkie Farr & Gallagher LLP and Arendt & Medernach SA as legal advisers. Houlihan Lokey UK Limited acted as financial adviser to the SUNs.