Billionaire Drahi knows the art of the deal

The billionaire telecoms entrepreneur struck a deal to cut borrowings at Altice France in February, lifting the cornerstone of his business empire out of negative equity.

- PATRICK DRAHI IS on a roll.

PATRICK DRAHI IS on a roll.

Now he's considering cashing in the company's main asset — France's SFR mobile-phone network.

A quickfire disposal would be bittersweet for the bondholders who just agreed to rescue Drahi from the mire.

Drahi warned in March last year that Altice France's €24 billion ($27 billion) of net debt was unsustainable and creditors would have to take losses. Back then, net leverage was more than six times profit as measured by earnings before interest tax, depreciation, and amortisation. The equity value was zero or less.

A restructuring is set to cut net borrowings to just over €15 billion when it completes later this year, with subordinated creditors taking the biggest haircuts. The primary compensation? A 31% stake in the business for the senior creditors, 14% for the juniors. Drahi retained control with the rest. But the value of that equity could be about to become deliciously clear.