Charter emerges from bankruptcy

1 Dec 2009

US-based cableco Charter Communications has announced that it has officially emerged from chapter 11 bankruptcy following the implementation of a corporate reorganisation plan which has cleared around USD8 billion of debt. As reported by CommsUpdate on 16 October 2009, Charter, which filed for bankruptcy under chapter 11 of the US bankruptcy code on 30 March 2009, developed the financial reorganisation to reduce its USD21.67 billion debt, while also reinstating about USD11.8 billion of its senior bank debt at below-market interest rates. The plan was subsequently approved by the judge overseeing the firm’s bankruptcy on 18 November leaving the firm with around USD13 billion of outstanding debt. 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 investment in Charter as creditors exchange debt for company equity. The new Charter will reportedly apply for listing on the Nasdaq in around 45 days.

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