Altice France, a major French telecommunications company, based in Luxembourg, operates as both a mobile network operator and a large telecommunications provider and is owned by billionaire Patrick Drahi. The organisation recently filed for Chapter 15 bankruptcy protection in New York. This move seeks U.S. recognition of its French "safeguard proceedings" as the company grapples with substantial debt.

With an estimated €19.2 billion debt, Altice France, which owns French telco SFR, has faced significant financial struggles. In February, it reached an agreement with creditors to cut its debt by €8.6 billion. The Chapter 15 filing acknowledges that much of its secured debt is governed by New York law and held by U.S. entities.

To alleviate its financial burden, Altice has been divesting assets, including selling a 24.5% stake in BT group, the UKs largest telecommunications provider, and separating its French data center assets. The company's Portuguese unit is also looking to sell its data centers amid an ongoing corruption probe.

Red more at DCD

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Austrian prosecutors have filed their first indictment against Signa founder René Benko, currently in pre-trial detention. He's accused of "fraudulent Krida" (insolvency fraud) - concealing assets to prevent creditors' claims.

The indictment alleges Benko diverted assets during his personal bankruptcy. Specifically, he's accused of a €360,000 advance rent payment for a house and gifting €300,000 to family members, both reportedly done while in financial distress and anticipating insolvency.
This is part of a larger investigation into Signa's collapse, targeting over a dozen individuals and two legal entities for various offenses, with estimated damages around €300 million.

Read more on this update here

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LVMH's Loro Piana, an Italian luxury fashion brand specialising in high-end cashmere and wool products, has been placed under judicial administration by a Milan court for allegedly exploiting workers through subcontracted production. The cashmere brand is the latest to face scrutiny amid ongoing investigations into labour rights violations within the fashion industry.

The court found Loro Piana outsourced apparel production to Evergreen Fashion Group, which allegedly exploited workers. Loro Piana will be overseen by a court-appointed administrator for one year to rectify supply chain issues. The brand isn't facing criminal charges, and the order will be lifted if compliance is met within the deadline. Loro Piana stated the supplier breached contracts by not disclosing subcontractors, and they terminated relations with them upon discovery in May. The brand condemns illegal practices and reaffirms its commitment to human rights.

Loro Plana has been a subsidiary of the French multinational luxury goods conglomerate LVMH (Moët Hennessy Louis Vuitton SE) since 2013. 

More on this story here

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Germany’s commercial real estate sector continues to face significant challenges as financing dries up, development projects stall, and major firms face insolvency. The Trianon Tower in Frankfurt has emerged as a prominent example, following the financial collapse of its ownership. The court-appointed insolvency administrator, Pluta, attributed the insolvency to “liquidity difficulties” and confirmed that discussions with creditors are ongoing. 

Pluta has engaged Mellum Capital to oversee a structured sale process for the high-rise property. While Mellum declined to comment, the outcome of the sale is expected to serve as a key indicator of investor sentiment and pricing stability within Germany’s office property market.

More at ET Realty from The Economic Times

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