Broadband Operator Radiate Moves Assets Out of Creditors’ Reach

Stonepeak Partners-backed Radiate disclosed to lenders that it moved some assets out of the reach of existing creditors, according to people familiar with the situation.

• The firm also known as Astound Broadband transferred collateral tied to its Texas-based unit Grande Parent into a newly created entity, said the people, who asked not to be identified discussing a private matter
  • The strategy — known in industry parlance as an “unrestricted subsidiary”— is often a prelude to money-raising deals that hurt existing creditors by weakening their claims to collateral
• The designation of an unrestricted subsidiary comes as Radiate and some of its ...