Charter Files Amended Reorganization Plan

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Charter Communications has filed an amended plan of reorganization with the U.S. Bankruptcy Court for the Southern District of New York, boosting the amount of preferred stock it will make available to certain noteholders and increasing the potential funds held in a litigation escrow account.

The bankruptcy court is scheduled to consider confirmation of the plan in a hearing on July 20.

According to Charter, the amendments include additional consideration to holders of convertible senior notes of Charter Communications Inc. (CCI notes) in the form of 15% payment-in-kind preferred stock in the reorganized company and potential amounts from a litigation escrow depending on the bankruptcy court determining which

Charter entities are entitled to the proceeds of the litigation escrow. The amended plan adjusts the terms of the new preferred stock to: increase the amount from $72 million to $138 million; change the mandatory redemption date from seven years after issuance to five years; adjust the changes in the dividend rate so the new preferred stock would have an increase in dividend rate to 17% and 19% in years four and five, respectively; and provide for the listing of the new preferred stock on a stock exchange along with Charter's new common stock.

Charter filed its pre-packaged Chapter 11 reorganization on March 27. The company has said it hopes to emerge from bankruptcy by the end of the summer.

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