Posted by madcityradio.com on March 27, 2009 at 10:19:18:
Charter files for prearranged bankruptcy
by TCT Staff/news services — 3/27/2009 8:22 am
Charter Communications announced that it has it filed for the prearranged bankruptcy it previously said it would by April 1.
The filing by St. Louis-based Charter came in the United States Bankruptcy Court for the Southern District of New York.
The fourth-largest U.S. cable operator and dominant subscription TV provider in the Madison area has been struggling with potential insolvency for years.
Charter had about $21.7 billion in debt at the end of 2008. Holders of $8 billion of the debt agreed to exchange it for almost full ownership in the new company, and some old debt was exchanged for new debt. After the bankruptcy, the company will have $13 billion mainly in bank debt, which expires from 2013 to 2016.
Private equity firm Apollo Group is planning to take ownership of most of Charter through the company's reorganization in bankruptcy court.
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