News
A federal judge on Friday blocked the finalization of Cable One’s deal to acquire the remaining stake of Mega Broadband.
By Brad Randall, Broadband Communities
A planned transfer of some $480 million from Cable One to acquire the remaining stake of Mega Broadband is on hold after an order from a federal judge in New York on Friday.
United States District Judge J. Paul Oetken signed the temporary restraining order in support of a motion by CoBank, one of Cable One’s lenders.
CoBank is seeking to stop the deal, which they argue will irreparably compromise their ability to repay outstanding loans, according to Light Reading.
The temporary restraining order was signed the day after the Wall Street Journal reported that Cable One was nearing a financing deal worth $1.25 billion.
Earlier this month, Cable One revealed they were in advanced discussions with GTCR, a private equity firm.
“GTCR has been working closely with Cable One to facilitate a potential transaction that would bring new capital into the business and highlight its unrealized potential,” said a GTCR managing director, Stephen J. Jeschke.
In their October 2 announcement about the discussions, Cable One said they were extending a deadline to finalize their acquisition of the remaining stake of Mega Broadband, from October 1 to October 9.
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