Charter Communications

March 27, 2009

Charter Communications, the nation's fourth largest cable operator, has filed for Chapter 11 bankruptcy reorganization in federal court in Manhattan.

The company, controlled by a Microsoft founder, Paul G. Allen, announced Friday that it has filed a pre-arranged Chapter 11 bankruptcy. In a pre-arranged bankruptcy, a company enters into reorganization with a plan to emerge that has the approval of major stakeholders. The rest of the creditors will be dealt with through bankruptcy court.

Charter had about $21.7 billion in debt at the end of 2008. Holders of $8 billion of the debt have agreed in principle to give up repayment of their debt in return for shares in the company and almost full ownership of the company.

After the bankruptcy, the company will have $13 billion in mostly bank debt, which expires from 2013 to 2016.

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.

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.

February 12, 2009

Charter Communications Inc., the money-losing cable-television company, said it plans to file for Chapter 11 bankruptcy as part of a financial restructuring, reducing obligations by $8 billion, on or before April 1.

Charter fell 4.6 cents, or 64 percent, to 2.6 cents in Nasdaq Stock Market trading at of 2:20 p.m. The stock reached an all-time low of 2.5 cents earlier in the day.

Charter Communications Misses Debt Interest Payments (Summary)

January 27, 2009

Charter Communications (CHTR.O), the fourth largest U.S. cable operator, announced Jan. 15 that it missed interest payments of $73.7 million. The company has until Feb. 15 to make payments and avoid default. Charter shares have also dropped 89% in the past year.

Charter Communication’s Credit Rating (Summary)

On Jan. 15, S&P lowered its corporate rating of Charter Communications and all related entities to “D” from “CC”. Moody’s Investors Service downgraded Charter’s senior unsecured debt rating to “Ca” in December.

Web Articles:

• Charter Enters Bankruptcy, Gets $3 Billion in Capital (Update3)
• Debt load pushes Charter into bankruptcy
• Charter Said to Hire Advisers for Possible Bankruptcy Filing
• Wall St on Charter Communications bankruptcy watch
• Charter misses $74 million in debt interest payments
• Charter Misses Bond Interest Payments, Risks Default
• Charter to File Bankruptcy as Part of Restructuring

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