Altice France is reportedly considering giving secured creditors a stake in the company in return for them taking a hit on the value of their debt holdings.
As reported by Bloomberg, debtholders could acquire an equity stake between 10 to 15 percent in the company, in exchange for writing off the same amount of their principal holdings.
Altice's proposal does not appear to include any new funds from owner Patrick Drahi, who would remain in charge.
This differs from a separate Bloomberg report last month, which said that creditors sent Altice a proposal to fix its debt, thought to be around $60 billion, which would have resulted in Drahi losing control of the company.
The report this week cites sources familiar with the discussions, and suggests that Altice has asked the steering committee, which includes investment funds BlackRock, Elliott Investment Management, and Pacific Investment Management, among others, if the creditors would be willing to sign a non-disclosure agreement to negotiate on this basis.
It coincides with reports in Portugal claiming Altice's Portuguese subsidiary is in talks to sell its 50.01 percent stake in wholesale fiber access network operator FastFiber to Morgan Stanley Infrastructure Partners.
Journal Economico reported Morgan Stanley already owns the remaining 49.99 percent stake in FastFiber, and wants to take full control of the company.
In August, Drahi sold Altice's 24.5 percent stake in UK telecoms giant BT to Bharti Airtel, in a deal estimated to be worth about £3.2 billion ($4.1bn) at the time.
Drahi only increased Altice UK's stake in BT to 24.5 percent in May of last year, and even had plans to increase it to nearly 30 percent.
However, after years of acquisitions, the company has been looking to shift assets in order to pay down its mounting debt.
The company is open to selling its telecoms business and recently spun off its French data center assets, forming a new company with more than 250 facilities in France, which was then sold to Morgan Stanley.
Altice has been in talks over a deal to sell its Portuguese mobile unit, but ended talks with Saudi Telecom Group (STC) in June.
The Portuguese unit of Altice has also been separately looking to sell off its data center unit.
Altice Portugal has been grappling with a corruption probe, which led to the arrest of Drahi's fellow co-founder and former chief operating officer Armando Pereira. Drahi told investors last August that he felt "betrayed."
