GTCR intervenes in bid to break deadlock on Cable One-Mega Broadband deal
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Cable TechnologyBroadbandRegulatory & PoliticsNews GTCR intervenes in bid to break deadlock on Cable One-Mega Broadband deal GTCR and Mega Broadband are stepping into the Cable One-CoBank lawsuit in an attempt to expedite a pair of court hearings that have stalled the Cable One-Mega Broadband deal. Jeff Baumgartner,Senior Editor,Light Reading3 Min Read The protracted Cable One-CoBank saga has clearly become a major source of frustration for Mega Broadband Inc. (MBI) and GTCR. With Cable One's pending deal to acquire a big chunk of MBI set to stay in limbo for another three weeks, MBI and GTCR (the private equity firm that formed MBI) are now trying to intervene in the case and urge the court to accelerate long-delayed hearings that could lead to a resolution. Cable One's deal to acquire the 55% of MBI it doesn't already own has been in a holding pattern for weeks. Just as the deal was about to close on October 9, CoBank – one of Cable One's lenders – successfully got a New York court to temporarily halt the $480 million transaction over the lender's concerns that Cable One was on the brink of bankruptcy and would be unable to repay its debts if the deal were allowed to proceed. Hearings for CoBank to show cause on the temporary restraining order (TRO) and Cable One's petition to dissolve the TRO have been delayed multiple times. On October 19, Judge Victor Marrero ordered that the hearings be adjourned until December 4. As detailed in November 11 court documents that drip with frustration, GTCR and Mega Broadband have asked to intervene in the case and requested that the court move those hearings to next week. Layoff and debt default warnings MBI/GTCR reasoned that they will "continue to suffer irreparable harm" by Cable One's failure to close the deal and outwardly asserted that Cable One "no longer adequately represents" their interests. "[N]ow that CABO has thrice agreed to adjourn the hearing, and in turn extend the TRO, the Proposed Intervenors no longer believe that CABO adequately represents their interests and must intervene to ensure that the hearing is not moved again," they argued. They added that MBI, which runs Vyve Broadband, "faces the real risk of losing employees" and is also facing the risk of defaulting on about $938 million of total debt maturing in November 2027 if the transaction fails to close. MBI/GTCR also filed with the court a proposed memorandum of law in opposition to CoBank's order and one in support of the TRO's dissolution. Cable One and CoBank apparently are not on board with this idea. MBI/GTCR told the court that it sought consent from both parties to intervene, but Cable One informed them on November 6 that it did not consent, with CoBank stating its intent to oppose MBI/GTCR's intervention. GTCR/MBI's move to intervene came after they sent a letter to the Cable One board on November 8 asking that principals and advisors related to the transaction, including from Cable One, GTCR and CoBank, meet in person later that week to discuss "competing proposals" from GTCR and an alternative, lender-backed one from Cable One that is favored by CoBank. GTCR argued that its offer is the best one in part because it would provide Cable One with "a liquidity runway through at least 2029." GTCR also threatened to intervene in the case if the meeting did not occur, and it made good on that threat on November 11. About the Author Jeff Baumgartner Senior Editor, Light Reading Jeff Baumgartner is a Senior Editor for Light Reading and is responsible for the day-to-day news coverage and analysis of the cable and video sectors. Follow him on X, LinkedIn and Bluesky. Baumgartner also served as Site Editor for Light Reading Cable from 2007-2013. In between his two stints at Light Reading, he led tech coverage for Multichannel News and was a regular contributor to Broadcasting + Cable. Baumgartner was named to the 2018 class of the Cable TV Pioneers. See more from Jeff Baumgartner Want more Light Reading stories in your Google search results? OFC Conference and Exhibition Experience OFC. Where the industry goes to learn, showcase technologies, forge partnerships and close deals. Registration is Open Popular whitepapers in 5G More whitepapersAntenna Monitoring for Programmable PerformanceAntenna Monitoring for Programmable PerformanceAntenna Beam Efficiency in Urban 4G/5G NetworksAntenna Beam Efficiency in Urban 4G/5G Networks Our Latest Videos More videosWi-FiWi-Fi 8, Edge AI and the Introduction of Security and Management servicesWi-Fi 8, Edge AI and the Introduction of Security and Management servicesCable TechnologyHarmonic CEO Charts a Pure-Play Broadband FutureHarmonic CEO Charts a Pure-Play Broadband Future
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