Charter Communications Enters Chapter 11 Bankruptcy

March 27, 2009

Charter Communications, the fourth largest cable operator, filed for bankruptcy on Friday and raised $3 billion in fresh capital. Charter raised as much as $2 million in equity proceeds, $1.2 billion in rollover debt and $267 million in new debt to support the refinancing.

The company also said it negotiated a restructuring with bondholders that will reduce its $21.7 billion in total debt by $8 billion. The move cuts interests payments for Charter by $830 million.

Paul Allen will receive up to 7 percent of equity in the company and keep the largest voting interest in the company at 35 percent.

Charter’s revenues increased 8 percent in 2008 while it reported a net loss of $2.45 billion.

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