Charter early with restructuring plan; hearing is today
EmptyCharter Communications, the cable operator controlled by Paul Allen, has filed a pre-arranged plan to restructure its debt under Chapter 11 bankruptcy protection.
The St. Louis-based company said last month that the filing would come by April 1. Microsoft co-founder Allen will continue as an investor and retain the largest voting stake in the company.
Under the plan reached with key debt-holders, the nation's fourth-largest cable company by subscribers will get more than $3 billion in investments from bond holders via new and rollover debt and equity proceeds.
Charter said it plans to reduce its industry-leading debt load of $21.7 billion as of the end of 2008 by about $8 billion. The debt partly stems from a 1990s acquisition spree.
Charter also has appointed Gregory Doody as chief restructuring officer. He will oversee the bankruptcy process, which some experts say could be completed within months, after overseeing in recent years the restructurings of power producer Calpine Corp. and health-care firm HealthSouth.
A hearing in the Charter bankruptcy case before Judge James Peck at the U.S. Bankruptcy Court for the Southern District of New York is scheduled for today. (partialdiff)