Charter reorganisation plan approved

18 Nov 2009

US cableco Charter Communications has announced that the judge overseeing the firm’s bankruptcy has approved a corporate reorganisation plan which could see the firm emerge from the chapter 11 process in the near future. As reported by CommsUpdate on 16 October 2009, Charter has developed a financial reorganisation plan which will clear USD8 billion of its USD21.67 billion debt, while also reinstating about USD11.8 billion of its senior bank debt at below-market interest rates. Chairman Paul Allen, who is a co-founder of Microsoft, will retain a 35% voting stake in the company, but will lose most of his USD8 billion investment in Charter. The company filed for bankruptcy under chapter 11 of the US bankruptcy code on 30 March 2009 and was further hit earlier this month when it reported a USD1.03 billion net loss for the third quarter of 2009, following a USD2.85 billion impairment charge.

United States, Charter Communications (Spectrum, incl. Spectrum Mobile)