Apollo, Banks Discuss Restructuring for Hung Brightspeed Debt

Apollo Global Management Inc. and a group of banks led by Bank of America Corp and Barclays Plc have been holding restructuring talks for a slug of Brightspeed debt that could see the banks take a loss, according to people with knowledge of the matter.

Negotiations center around Brightspeed’s owner Apollo and the banks providing new financing to support the company, while the banks would take a haircut on the value of their existing loans, the people added. The new financing would be at least $3.5 billion, some of the people said.

Discussions have been taking place over the course ...