A New York federal judge on Friday temporarily blocked Cable One's $480 million purchase of the 55% of Mega Broadband Investments (MBI) it did not already own, granting an emergency restraining order sought by lender CoBank, which holds about $1.1 billion in secured Cable One credit.

Cable One shares plunged $4.07, or 26.78%, to close at $11.14 on Friday. As of Friday afternoon, the stock had fallen 90.13% so far in 2026. Cable One has not commented on the ruling, and the restraining order remains in place pending a hearing.

Why did CoBank sue?

CoBank sued to stop the $480 million transfer, arguing in court filings that Cable One had previously disclosed the MBI equity is worth a fraction of that amount. If the transfer went ahead, CoBank's ability to be repaid on its $1.1 billion of outstanding loans "will be irreparably compromised."

The lender characterized the pending transaction as a "fraudulent transfer" and described the terms of a reported $1.25 billion new financing package as "predatory economics."

"Should this $480 million transfer occur, Cable One would sink deeper into insolvency and make Cable One's remaining assets unreasonably small given its already large debts," CoBank told the court. "Cable One is trending towards a bankruptcy proceeding."

A portion of CoBank's loans falls due in May 2028. Larger portions, including a B3 loan of $727.2 million, are due and payable on October 30, 2029.

What was at stake in the deal?

The ruling landed just as Cable One was about to close the acquisition of the remaining 55% stake in MBI. MBI owns Vyve Broadband, a cable and broadband operator with roughly 210,000 customers and a footprint of about 657,000 passings as of September 2025.

The relationship dates to 2020, when Cable One agreed to acquire 45% of Mega Broadband with an option to buy the rest starting in 2023. In January, Cable One amended the original terms to acquire the remaining stake by October 1, 2026.

A week before the ruling, Cable One said it was in "advanced discussions" with GTCR — the private equity firm that formed MBI — along with certain existing lenders and potential new investors to address the operator's capital requirements. Cable One and GTCR agreed to extend the deadline to complete the transaction to Friday, October 9.

The Wall Street Journal reported on October 8 that Cable One was nearing a deal for about $1.25 billion in new financing from new and existing shareholders to "address its balance sheet" and pay down existing debt, with an announcement expected as soon as October 9. That plan appears to have stalled after CoBank filed suit.

How bad is Cable One's financial position?

Cable One lost 17,400 broadband subscribers in Q2 2026 and ended the quarter with gross debt of $3.06 billion.

Trouble over the MBI transaction had been building for months. In June, Cable One disclosed in an 8-K filing that the exchange agent for its offer to MBI holders of secured term loans had received "irrevocable lender acceptances" from lenders holding about 34% of all outstanding MBI term loans. At the time, the company stated: "The Company reserves the right, in its sole discretion, not to consummate the MBI Term Loan Exchange Offer for any reason."

The restraining order now leaves the buyout, the refinancing talks and the October 9 deadline in limbo pending the court hearing, with Cable One's $3.06 billion debt load and shrinking subscriber base framing whatever resolution emerges.