Altice USA Lenders Tap Sullivan & Cromwell for Antitrust Fight

(Bloomberg) — Altice U.S. lenders have tapped Sullivan and Cromwell to help fight a lawsuit alleging they worked together to freeze the company out of the U.S. credit market.

Sullivan & Cromwell, known for its antitrust expertise, will work with Akin Gump Strauss Hauer & Feld, which was previously held by creditors, according to people familiar with the matter who asked not to be named discussing a private matter.

U.S. billionaire Patrick Drahi’s telecom empire stunned credit markets last month by suing lenders including Apollo Capital Management LP, Ares Management LLC and BlackRock Financial Management Inc., alleging that their so-called cooperation agreement amounted to an “illegal cartel.”

The case, the first of its kind filed by a debtor, highlighted the legality of agreements aimed at giving bond and loan holders more leverage by negotiating en bloc rather than individually.

Representatives of the group of lenders to Sullivan & Cromwell and Altice USA did not immediately respond to requests for comment. A representative for Altice USA also did not immediately respond.

Recently Optimum Communications Inc. Altice USA, rebranded as Altice USA, is struggling under a heavy debt load. The firm is working with Kellogg, Hansen, Todd, Figel & Frederick, which is known for its antitrust expertise and is also the architect of the case.

According to Bloomberg, Akin Gump Strauss Hauer & Feld, together with PJT Partners, which is also advising the creditor group in question, said in a phone call with creditors last month that there was no merit to the case.

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