Charter Files For "Prearranged Bankruptcy"
jamie points out news that Charter Communications filed for “prearranged” Chapter 11 bankruptcy on Friday, primarily to reorganize some of the .7 billion in debt it has accrued. Quoting: “The St. Louis-based 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. After Chapter 11, interest costs at Charter, which has never posted a profit since going public in 1999 due to massive debt interest payments, will be cut in half to 0 million a year. The filing restructures about billion of debt at Charter, which is controlled by Microsoft Corp. co-founder Paul Allen, but leaves about billion of debt on its books. Allen will control 35 percent of the votes in the reorganized company. In the bankruptcy, Allen’s 51 percent equity stake in the cable operator will be wiped out, along with shares of other stockholders. Allen also holds some debt and preferred stock.”
Read more of this story at Slashdot.
