Charter Bankruptcy Hearing Delayed
Banks Set Closing Arguments For Sept. 30
Mike Farrell -- Multichannel News, 9/29/2009 2:45:21 PM
It looks like the fate of the Charter Communications bankruptcy will be delayed at least a few more days -- to allow attorneys representing banks that oppose the MSO's reorganization plan to continue their closing arguments.
U.S. Bankruptcy Court Judge James Peck was scheduled to decide on the case on Sept. 30, but pushed back that date to allow attorneys for J.P Morgan Chase and Wells Fargo to conduct their closing arguments. Closing statements from stakeholders supporting the plan were completed last week.
Now it looks like the banks will have Sept. 30 for their closing arguments and Oct. 1 for rebuttal. Judge Peck is expected to make his decision sometime after that.
The two banks, which oppose Charter's assumption that existing lending agreements should transfer unscathed to the reorganized company. The banks assert that the reorganization is a change of control, which would allow them to redo their lending agreements, preferably at higher interest rates.
Delays are nothing new to the Charter bankruptcy. Judge Peck had expected testimony in the case to last about 5 days - it went on for more than two weeks.
Charter has said that without the ability to transfer its bank agreements as is, reorganization would be impossible.
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