GTCR Asks Judge to Speed Up Dispute Over Cable One Deal

what happened

GTCR has asked a federal judge to accelerate litigation over a stalled agreement requiring Cable One to buy out the private-equity firm's stake in Mega Broadband Investments (MBI), according to The Wall Street Journal. The firm suspects Cable One is negotiating an alternative financing deal with its lenders. The move follows a warning from Cable One that it may need to file for bankruptcy if it cannot refinance upcoming debt maturities.

Cable One already owns 45% of MBI. The deal would have given it the remaining stake along with fresh financing. CoBank, one of its lenders, sued as the deal was set to close, arguing that Cable One is insolvent and overpaying. Judge Victor Marrero has extended a restraining order blocking the transaction three times. GTCR wants a hearing next week instead of the early December date. It has also proposed two paths: a $415 million cash paydown for some term lenders, or a pro rata paydown of 60 cents on the dollar for a wider group, totaling more than $650 million.

why it matters

For investors, the case is a signal of Cable One's debt burden. Looming maturities and the threat of bankruptcy make its shares and bonds sensitive to refinancing terms and the outcome of the court dispute.

market impact

Cable One: bankruptcy risk and the court fight weigh on its shares and debt

• ▼Cable One debt pressure down — bankruptcy threat and refinancing uncertainty pressure its bonds

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