{"id":48364,"date":"2026-10-12T08:06:56","date_gmt":"2026-10-12T07:06:56","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=48364"},"modified":"2026-10-12T08:37:56","modified_gmt":"2026-10-12T07:37:56","slug":"broadband-altnet-cityfibre-reportedly-preps-up-to-2bn-uk-haircut-on-debts","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2026\/10\/broadband-altnet-cityfibre-reportedly-preps-up-to-2bn-uk-haircut-on-debts.html","title":{"rendered":"Broadband altnet CityFibre reportedly preps up to \u00a32bn UK haircut on debts"},"content":{"rendered":"<p>A new report claims that the UK&#8217;s largest alternative Full Fibre broadband network, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/cityfibre\" target=\"_blank\">CityFibre<\/a>, is preparing to ask lenders (NatWest, Lloyds and Soci\u00e9t\u00e9 G\u00e9n\u00e9rale) to accept a huge write-down on their debts as part of efforts to &#8220;<em>establish a strong, long-term capital structure for the business<\/em>&#8220;. The move is predicted to cost lenders up to \u00a32bn.<!--more--><\/p>\n<p><a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/cityfibre\" target=\"_blank\">CityFibre<\/a> has so far built their <strong>Fibre-to-the-Premises<\/strong> (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/fttp\">FTTP<\/a>) based broadband network to cover 4.8 million UK premises (4.6m RFS), which is home to 1.1 million customers. The company also reported their <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2026\/10\/cityfibre-build-uk-broadband-network-to-4-8m-premises-and-prep-900m-for-consolidation.html\">annual accounts<\/a> last week, which showed revenues of \u00a3164m (up 36%) and adjusted EBITDA quadrupling to \u00a360m, but they also had total liabilities of \u00a36.06bn (up from \u00a35.12bn) and their loss after tax increased to \u00a3397m (up from \u00a3378m).<\/p>\n<div class=\"bq2\"><strong>NOTE:<\/strong> <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/cityfibre\" target=\"_blank\">CityFibre<\/a> is owned by Antin Infrastructure Partners, Goldman Sachs, Mubadala Investment Company, Interogo Holding etc. The <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/fttp\">FTTP<\/a> network is supported by lots of UK ISPs like <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/vodafoneuk\" rel=\"nofollow\" target=\"_blank\">Vodafone<\/a>, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/tt\" rel=\"nofollow\" target=\"_blank\">TalkTalk<\/a>, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/zen_internet\" target=\"_blank\">Zen Internet<\/a>, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/bskyb\" rel=\"nofollow\" target=\"_blank\">Sky Broadband<\/a> and many more (local ISP availability does vary a bit between locations).<\/div>\n<p>The same results also revealed that the network operator had prepared \u00a3900m in a \u201c<em>new equity commitment<\/em>\u201d to help drive future consolidation in the altnet market, which is currently under significant strain from rising build costs, high interest rates and competition. However, CityFibre itself is not immune to such strains, which means that they also need to get their own underlying finances in order.<\/p>\n<p>The operator&#8217;s CEO, <strong>Simon Holden<\/strong>, last week informed the market of how they recognised that their &#8220;<em>capital structure needs to evolve to support our acquisition drive<\/em>&#8221; and had thus been in &#8220;<em>discussion with our lenders to establish a strong, long-term capital structure for the business.<\/em>&#8221; According to a new report in the <a href=\"https:\/\/www.telegraph.co.uk\/business\/2026\/10\/11\/banks-brace-for-2bn-loss-from-cityfibre-restructure\/\" target=\"_blank\" rel=\"noopener\">Sunday Telegraph<\/a> (paywall), the cost of securing the aforementioned equity deal is allegedly set to involve lenders agreeing to a massive haircut worth up to \u00a32bn on their \u00a33.8bn debt pile (including banks converting some of their debt into equity).<\/p>\n<p>Such an approach has, over the past year, become increasingly common across the UK&#8217;s embattled market for alternative networks. <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/gigaclear\" rel=\"nofollow\" target=\"_blank\">Gigaclear<\/a> (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2026\/04\/lenders-take-control-of-rural-uk-full-fibre-broadband-isp-gigaclear.html\">here<\/a>), <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/gnetwork\" target=\"_blank\">G.Network<\/a> (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2026\/03\/london-full-fibre-broadband-provider-g-network-moves-forward-debt-free.html\">here<\/a>), <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/kcom\" rel=\"nofollow\" target=\"_blank\">KCOM<\/a> (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2026\/04\/kcoms-uk-results-reveal-huge-530m-write-down-in-value-of-its-assets.html\">here<\/a>) and <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/airband\" rel=\"nofollow\" target=\"_blank\">Airband<\/a> (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2026\/09\/administrators-reveal-financial-details-of-voneus-acquisition-of-airband.html\">here<\/a>) are just four recent examples, but more are sure to follow and that now seems likely to include CityFibre.<\/p>\n<p>The newspaper&#8217;s insider sources indicate that the exact figures and detail of CityFibre&#8217;s agreement on all this has yet to be finalised and some lenders are expected to take a bigger write-down than others. For example, the state-backed National Wealth Fund (NWF), which has contributed c.\u00a3300m of public funding to CityFibre, will reportedly not be impacted by the refinancing. Tough year to be an equity investor and creditor in this market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A new report claims that the UK&#8217;s largest alternative Full Fibre broadband network, CityFibre, is preparing to ask lenders (NatWest, Lloyds and Soci\u00e9t\u00e9 G\u00e9n\u00e9rale) to accept a huge write-down on their debts as part of efforts to &#8220;establish a strong, long-term capital structure for the business&#8220;. The move is predicted to cost lenders up to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":42225,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[472,418,56,34],"class_list":["post-48364","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-cityfibre","tag-fttp","tag-statistics"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/117426678536397712","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Broadband altnet CityFibre reportedly preps up to \u00a32bn UK haircut on debts - ISPreview UK<\/title>\n<meta name=\"description\" content=\"A new report claims that the UK&#039;s largest alternative Full Fibre broadband network, CityFibre, is preparing to ask lenders (NatWest, Lloyds and Soci\u00e9t\u00e9\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2026\/10\/broadband-altnet-cityfibre-reportedly-preps-up-to-2bn-uk-haircut-on-debts.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Broadband altnet CityFibre reportedly preps up to \u00a32bn UK haircut on debts - 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