Only one way to stand the pain, Old Friend. Join me as I numb the misery?
Posted on 03/28/2009 3:54:59 PM PDT by Graybeard58
Charter Communications Inc. filed for Chapter 11 bankruptcy Friday in an effort to reduce its debt by $8 billion.
The cable giant is working toward getting its restructuring plan confirmed in August so it can emerge from bankruptcy later that month or early September, according to sources close to the process.
Charter appointed attorney Gregory Doody as its chief restructuring officer to oversee the financial restructuring process and minimize the impact on day-to-day operations. Charter had recently hired Doody as a turnaround specialist and adviser.
Doody previously led successful in-court and out-of-court restructurings, including at Calpine Corp., a San Jose, Calif.-based energy company, and HealthSouth Corp., one of the nation's largest providers of outpatient surgery, diagnostic imaging and rehabilitative services. HealthSouth president and CEO Jay Grinney credited Doody with helping the company redirect its focus in the wake of a multibillion-dollar corporate accounting fraud perpetrated under prior management.
The bankruptcy, filed in U.S. Bankruptcy Court for the Southern District of New York, was pre-arranged in that the major creditors agreed to the bankruptcy terms before the petition was filed, allowing the plan to move more quickly through court.
The company, which had been burdened a $21 billion debt, said it reached agreements-in-principle with debt holders that include their investment of more than $3 billion, including up to $2 billion in equity proceeds, $1.2 billion in roll-over debt and $267 million in new debt to support the overall refinancing.
Charter said it expects that cash on hand and cash from operating activities will be adequate to fund its projected cash needs as it proceeds with its financial restructuring so it does not intend to seek debtor-in-possession financing.
Microsoft co-founder Paul Allen will retain the largest voting interest — a 35 percent stake — in the company. Private equity firm Apollo Group is also set to take a major stake in Charter.
“The financial restructuring is good news for Charter and our customers and, if approved, will result in Charter being better positioned to deliver the products and services our customers demand now and in the future,” said Neil Smit, president and chief executive officer, in a statement. “The support of our bondholders and their new investment in charter also underscores their confidence in our company and business.”
Charter said it has also filed motions seeking permission to continue employee wage and benefits programs and honor current customer programs without interruption, and to pay trade creditor balances and fees to local franchise authorities.
Charter has hired Kirkland & Ellis LLP as legal counsel, Lazard as financial adviser and AlixPartners LLP as restructuring adviser.
Bondholders are represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel, and its financial advisers are Houlihan Lokey Howard & Zukin Capital, Inc. and UBS Securities LLC.
Charter had announced in February that it planned to file for bankruptcy by April 1.
St. Louis-based Charter Communications Inc. (Nasdaq: CHTR) is the nation's third-largest cable television provider, and also provides digital video programming and high-speed Internet access. It has 5.5 million customers.
Son of "Howdy"?
It was in this area and wanting to charge customers about 10 times what the other companies do. Not only that, but when the clients got the bill for what they thought they were paying, it would be substantially more. Charter was seen as sort of unscrupulous sorts to say the least, no one is missing them
Only one way to stand the pain, Old Friend. Join me as I numb the misery?
what communications company (cell, broadband, DSL ... ) does anyone have that they actually like?
we user Charter in this area. It’s my impression (FWIW) that Charter needs to figure out a way to get their installations right the first time and with trouble free equipment.
all these service call-backs have got to be killing them, dollars wise.
Charter can’t survive. Charter steals money from customers to maintain cash flow. Charter steals from cities in which it is franchised.
In 2007, the profits generated per employee was negative $192,000. Charter has never, that is not ever in history shown a profit.
Charter is Obama business in real operation.
Charter is the only vendor we have in this area that is cable...we’re a small market (Southern Oregon,) I wonder if they’ll just sell the subscriber base off to another company, or keep us as customers.
I’ve been happy with them, but their bills are skyrocketing. They charged me an additional $45 in increases from November to March.
Ed
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