Altice France Puts Stake in XpFibre Out of Creditors’ Reach (1)

Altice France contributed a majority stake in French fiber unit XpFibre to an unrestricted subsidiary, adding to creditors’ concerns about how the company’s plans to cut debt will hurt their investments.

The heavily indebted French telecommunications firm contributed its 50.1% stake in XpFibre and some of its receivables to an unrestricted company on May 22, Altice France said in a statement on Tuesday.

Altice France is looking to sell that stake, and moving it to a company that is not subject to some debt covenants allows the parent firm to either raise new money in ways that may hurt existing ...