Key Highlights

  • Optimum Communications (NYSE:OPTU) fell about 24.94% to USD 0.62 early in the session on Wednesday, October 21, 2026, near a 52-week low of about USD 0.58, as lenders were described as close to taking control.
  • The proposed restructuring, negotiated with lenders including Apollo Global Management (NYSE:APO), Oaktree Capital Management and JPMorgan Chase (NYSE:JPM), would transfer equity to creditors and settle litigation, as described by people familiar with the talks.
  • The treatment of controlling shareholder Patrick Drahi and of preferred shareholders remained central to an agreement. The company had not issued a release on the talks as of Wednesday, October 21, 2026.
  • The 1,713.10% change in basic earnings per share in market data is a distorted ratio on a negative base, and it says nothing about the equity value left after a creditor-led restructuring.

A Creditor Takeover Nears

Optimum Communications (NYSE:OPTU), formerly Altice USA, is one of the largest US cable broadband providers and carries more than USD 21 billion of debt. On Wednesday, October 21, 2026 the shares fell about 24.94% to USD 0.62 early in the session, as a restructuring deal that would hand control to lenders was described as close. The lenders include Apollo Global Management, Oaktree Capital Management and JPMorgan Chase. The deal would also settle creditor litigation over earlier financing transactions. The shares had already fallen 5.81% to USD 0.90 on Friday, October 16, 2026. In the second quarter of 2026 the company lost about 40,000 broadband subscribers and revenue fell 5.8%, although margins reached a record. The company had raised USD 500 million earlier as its debt maturities approached.

Why the Equity Absorbs the Loss

In a restructuring, creditors rank ahead of shareholders, so when debt exceeds the value of the business, lenders typically exchange claims for ownership and existing equity is heavily diluted or cancelled. For Optimum Communications (NYSE:OPTU), more than USD 21 billion of debt against a market value near USD 234 million at the intraday price shows how thin the equity cushion has become. The 1,713.10% change in basic earnings per share is computed on a negative base, which magnifies small changes, so it does not signal operating improvement. The underlying trend is shrinking: broadband losses and falling revenue offset record margins, meaning the share of revenue kept as operating profit. Price to sales and price to earnings measures carry little meaning when equity value depends on the recovery terms agreed with creditors.

Risks and What to Watch

The central risk for Optimum Communications (NYSE:OPTU) shareholders is that a final agreement leaves common equity with little or no value as creditors take ownership. A second risk is a court-supervised process, such as Chapter 11, the US bankruptcy reorganisation procedure, which would add costs and could disrupt trading. Talks may also fail, which would leave the debt maturities and the litigation unresolved. The treatment of the stake held by Patrick Drahi and of preferred shareholders remains open. Investors should watch for a formal company announcement of restructuring terms, any related SEC filing, third-quarter results, the progress of the creditor litigation and any NYSE notice under its USD 1 minimum price standard, since the shares trade well below that level.

Where Things Stand

The answer is that little may be left for Optimum Communications (NYSE:OPTU) shareholders if lenders take control, which explains a fall of about 25% to USD 0.62 in one session. The large earnings growth figure is a distorted ratio, not a sign of recovery. The next catalysts are a formal announcement of restructuring terms, the treatment of the controlling shareholder and third-quarter results. Restructuring terms are not final, and this is not investment advice.