Billionaire Drahi Sued Over Optimum Debt Restructuring Moves (1)

Billionaire Patrick Drahi is reorganizing the debt-laden Optimum Communications Inc. on self-dealing terms without giving shareholders enough information to decide on a related transaction, according to a lawsuit filed Wednesday seeking to block the move.

A retail investor sued the French telecom magnate in Delaware’s Chancery Court, challenging his plan to place Optimum’s assets beyond the reach of a creditor consortium holding much of the US broadband’s giant $26 billion in debt. The reshuffling allegedly involves offloading assets to a new subsidiary, exchanging equity in that entity for stock held by insiders, and running a tender offer that would let ...