Court blocks Cable One’s purchase of Mega Broadband stake
A federal court has temporarily prevented Cable One from completing its purchase of the remaining 55% of Mega Broadband Investments Holdings LLC. CoBank, a lender to Cable One, brought the case alleging that paying the purchase price would improperly transfer assets, and Cable One said it will contest the allegations. Cable One also reported progress on proposed financing with GTCR, existing lenders and private-credit firms, but the financing remains subject to the legal restraint.
Why it matters
Cable One cannot complete the acquisition while the restraint remains effective under the deal terms. The proposed financing would address $2.45 billion of obligations and near-term maturities, but no definitive financing agreements have been signed and the company gave no assurance on the litigation’s timing or result.
Key facts
- 1The court restriction covers Cable One’s purchase of the remaining 55% interest in Mega Broadband Investments Holdings LLC. stocktitan.net
- 2CoBank, ACB filed the action on October 9, 2026, alleging that Cable One’s payment for the interest would be a constructive fraudulent transfer. stocktitan.net
- 3Cable One’s proposed financing is expected to address $2.45 billion of current obligations and near-term debt maturities. investing.com
- 4The planned financing would extend and reduce the revolving credit facility, settle the put option and fully repay the B-4 term loan. investing.com
- 5Cable One is not required to close the acquisition while a legal restraint remains in force. stocktitan.net
Open questions
- The materials do not establish when the court proceedings will be resolved or whether the restraint will remain in place.
- Cable One had not entered definitive financing agreements, so completion of the proposed financing is not assured.
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.