CoBank, which says it holds about $1.1 billion of Cable One's secured debt, asked a federal court to block the purchase of a 55% stake in Mega Broadband from GTCR on the day it was due. Cable One's market value is now about $64 million.
October 9, 2026
Tickers: CABO, CHTR, WOW, ATUS
A day after rallying on news of a rescue loan, Cable One faced a lawsuit from one of its own lenders.
CoBank, an agricultural lender that says it holds about $1.1 billion of Cable One's secured credit, filed suit in federal court in New York on Friday seeking an emergency order to stop the company from paying about $480 million for the 55% of Mega Broadband Investments it does not already own. The seller is the private equity firm GTCR, which had exercised an option requiring Cable One to buy the stake. Friday was the extended deadline for the purchase.
The lender's argument
CoBank argued that the payment would cause Cable One to "sink deeper into insolvency and make its remaining assets unreasonably small given its already large debts." According to its filing, Cable One's own disclosures value the equity stake at about $54 million, roughly a ninth of the purchase price.
Cable One had been finalizing a $1.25 billion first-lien term loan with new and existing lenders to fund the payment and refinance debt. Cable One, CoBank and GTCR did not immediately comment.
The shares
Cable One stock fell as much as 36% to $9.84, a new low, before recovering to about $11.21 in early afternoon, down 27%. The company's market value is about $64 million. Its 52-week high is $168.55, and it reported a second-quarter loss of nearly $1.2 billion after asset writedowns.
Thursday's session showed how quickly the outlook had been swinging: the stock traded between $10.86 and $16.31 before closing at $15.38 as reports of the financing package circulated.
What is at stake
The dispute pits two groups of claimants against each other. GTCR holds a contractual right to be bought out. CoBank wants to stop cash from leaving the company while its loans remain outstanding. Equity holders sit behind both. If the court blocks the payment, Cable One could face a breach of its obligation to GTCR; if it allows it, the company takes on a large new commitment for an asset its lender says is worth far less.
Opposing readings
One reading is that the suit is a negotiating tactic around the refinancing. Lenders often go to court to win better terms, the $1.25 billion loan was close to done, and a settlement could let the purchase proceed with lender protections.
Another reading is that the lawsuit exposes how little room the company has. A secured lender is describing Cable One as insolvent in a public filing, the stake is valued at a fraction of its price, and the equity is worth less than 7% of what it was at its 52-week high.
What comes next
The judge's ruling on the emergency request, any announcement on the term loan, and a statement from Cable One on its obligation to GTCR will determine whether the purchase closes, is delayed or is renegotiated.