CoBank Sues to Block Cable One Broadband Acquisition

CoBank ACB filed a lawsuit in a New York federal court on Friday to block Cable One Inc. from acquiring a 55% equity stake in Mega Broadband Investments from the private equity firm GTCR. The lender, which holds approximately $1.1 billion in secured credit issued by Cable One, requested an emergency restraining order to stop the transfer of roughly $480 million intended for the deal.

CoBank alleges that Cable One is "currently insolvent based on standard valuation methodologies." The lawsuit further claims that Cable One previously disclosed that the equity in Mega Broadband is either worth only a fraction of the acquisition price or is potentially worthless.