Optimum Communications filed a federal lawsuit in Manhattan on November 25, 2025 against BlackRock Inc., Apollo Capital Management, and six other creditors—Ares Management, GoldenTree Asset Management, J.P. Morgan Investment Management, Loomis Sayles & Company, Oaktree Capital Management, and PGIM—alleging that the group conspired to prevent the broadband operator from refinancing its $26 billion debt load.
The complaint claims the defendants formed a creditor cooperative that controls roughly 99 % of Optimum’s loans and bonds. Under the 2024 cooperation agreement, any refinancing change requires a two‑thirds supermajority vote, effectively locking Optimum out of negotiating separate terms and keeping borrowing costs high. Optimum contends that this arrangement has increased its bankruptcy risk and hindered routine capital management.
Optimum’s financial health is already strained, with a current ratio of 0.77 indicating short‑term obligations exceed liquid assets. The company recently announced that its subsidiaries entered into new credit agreements totaling $2 billion in principal to refinance existing debt, underscoring the urgency of the dispute. The lawsuit marks the first public legal action against BlackRock in this context, though the firm has faced other litigation, including a 2023 Tennessee Attorney General suit over ESG disclosures and a 2021 401(k) class‑action settlement of nearly $10 million. Texas Attorney General Ken Paxton also sued BlackRock, State Street, and Vanguard in November 2024 for alleged energy‑market manipulation.
Regulatory authorities are likely to scrutinize the alleged collusion, as the defendants’ actions could violate federal and New York antitrust laws by creating a group boycott that restricts a borrower’s refinancing options. The case could set a precedent for how creditor coordination is treated in concentrated markets and may prompt investigations into similar arrangements across the financial sector.
Beyond the immediate legal exposure, the lawsuit could damage BlackRock’s reputation among institutional clients who rely on the firm for credit solutions. If the court finds the defendants’ conduct unlawful, it could lead to fines, mandatory restructuring of the cooperative, and a broader reevaluation of creditor‑cooperative models in the industry. The outcome will be closely watched by regulators, investors, and other creditors navigating the balance between stability and competition in debt markets.
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