Charter to Restructure in Bankruptcy

Feb 12, 2009  •  Post A Comment

Charter Communications, which had been teetering on the edge of bankruptcy, said Thursday it had reached an agreement on a financial restructuring with a group of its debt holders, and will enter Chapter 11 on or before April 1.
The agreement reduces the cable operator’s debt by about $8 billion, and ensures that it will be able to continue its operations as normal, the company said.
“We are pleased to have reached an agreement with such a significant portion of our bondholders on a long-term solution to improve our capital structure,” said Neil Smit, president and CEO of Charter. “We are committed to continuing to provide our 5.5 million customers with quality cable, Internet and phone service.”
Charter said the purpose of its restructuring under Chapter 11 is “to strengthen its balance sheet in order to fully support the Company’s operations and service its debt. As such, the agreement in principle contemplates paying trade creditors in full.”
As part of the agreement, some debt holders will receive warrants to purchase shares of Charter common stock.
Charter said founder Paul Allen will continue as an investor, and will retain the largest voting interest in the company.
(Editor: Baumann. Corrects headline to note Charter bankruptcy. Corrects first two paragraphs to note bankruptcy.)

One Comment

  1. My personal belief is let them sink. I see a lot of Americans that need bailed out for a lot less money and no one helps them. Look they tried and didn’t get it right let someone buy them out and try and fix what they started.

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