Court Approves Charter Bankruptcy Plan
Next Phase: June 15 Stakeholder Vote
Mike Farrell -- Multichannel News, 5/5/2009 1:24:27 PM
Less than six weeks after filing for Chapter 11 bankruptcy protection, Charter Communications said Tuesday that it has crossed another milestone, after the bankruptcy court approved its disclosure statement and authorized the company to begin soliciting votes for its pre-arranged reorganization plan.
Charter filed for bankruptcy protection on March 27 in U.S. Bankruptcy Court for the Southern District of New York. As part of the pre-packaged plan, Charter's bondholders agreed to swap about $8 billion of company debt for equity and pump an additional $3 billion in new equity into the company.
"We are pleased to have reached this important milestone in our financial restructuring, and now with the court's authorization, we can begin the solicitation of stakeholder votes on our pre-arranged plan," Charter CEO Neil Smit said in a statement. "Charter continues to remain focused on offering our customers the latest products and reliable services, including cable, Internet and phone service. We are moving forward on our financial restructuring as planned and expect to emerge as a stronger company."
The court has set the voting deadline for June 15. A hearing to consider confirmation of the pre-arranged plan is scheduled for July 20.
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