Posted by madcityradio.com on March 31, 2009 at 11:14:02:
In Reply to: Charter files for prearranged bankruptcy posted by madcityradio.com on March 27, 2009 at 10:19:18:
Judge approves motions in Charter bankruptcy
TCT Staff/news services � 3/31/2009 9:29 am
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Charter Communications Inc., the Madison area's dominant subscription TV provider, said Monday a judge approved its "first-day" motions in its financial restructuring under Chapter 11 bankruptcy court protection.
The St. Louis-based company, which filed for prearranged bankruptcy protection last week, said in a news release that it received approval from the U.S. Bankruptcy Court for the Southern District of New York to honor current customer programs without interruption.
Charter also said it can continue employee wage and benefit programs, pay fees to local franchise authorities and use cash on hand to proceed with its financial restructuring.
The company seeks to emerge from bankruptcy as early as the end of summer and doesn't plan on selling any of its assets to competitors.
"We appreciate the prompt action by the Court in approving our first-day motions," CEO Neil Smit said in a statement. "These approvals help us to continue to operate our business as usual and continue to provide our customers with quality cable, Internet and phone service as we execute on our financial restructuring. We look forward to completing our financial restructuring as soon as practicable and emerging as a stronger company."
Charter said it expects that cash on hand and cash from operating activities will be adequate to fund its projected cash needs as it proceeds with its financial restructuring, and therefore has not sought debtor-in-possession financing.
Separately, Charter announced that the Nasdaq Stock Market on March 27 notified the company that its common stock will be suspended and delisted effective with the open of business on April 7. Charter said it does not intend to appeal the delisting decision and expects that its common stock will be quoted on the OTC Bulletin Board or in the "Pink Sheets" effective April 7. The stock was trading at 3 cents per share on Tuesday.