Legacy CommScope Lenders Seek $150 Million on Alleged Breach (1)

Vistance Networks, formerly known as CommScope Holding Co., was sued by a group of lenders who allege the telecommunications provider breached a debt agreement by failing to pay a prescribed premium of at least $150 million following a key asset sale.

The lenders contend that CommScope’s January divestiture of its broadband connectivity and cable unit for $10.5 billion to Amphenol Corp, constituted a sale of substantially all of it assets and therefore triggered an event of default under the terms governing its debt. Such a breach requires CommScope to pay a premium to lenders, according to the court ...