Amidst protests from some of its main creditors, Charter Communications has been able to successfully come out of bankruptcy. Charter's exit from Chapter 11 protection comes only a few weeks after the United States Bankruptcy Court for the Southern District of New York approved its reorganization plan. It's been almost nine months since it officially filed for bankruptcy.
By shedding $8 billion, or 40 percent of its overall debt, Charter says it will be able to reduce more than $830 million in annual interest expenses. In addition, Charter's reorganization plan will give it $3 billion for refinancing and new capital.
Control of Charter will be placed in its creditors, including Apollo Management AP, Crestview Partners, Oaktree Capital Group and Franklin Resources. Meanwhile, Charter's chairman Paul Allen would keep a 35 percent voting stake in the MSO.
So what's next? Charter said in a statement that it will issue new stock on the NASDAQ market no earlier than 45 days after it emerges from bankruptcy--placing a new offering around mid-January.
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- Multichannel News has this article
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