After filing to extend its Chapter 11 filing last week, a judge presiding over the case said he will approve the Charter Communications' reorganization plan paving the way for the MSO to come out of Chapter 11 bankruptcy by the end of this year. According to industry reports, the MSO could emerge out of bankruptcy anytime between November 2nd and December 15th.
Previously, Charter filed for bankruptcy protection in March in an effort to cut $8 billion off its $21.7 billion debt load while getting more than $3 billion for refinancing and overall capital.
Charter's road to exiting bankruptcy has been anything but smooth. In July, JPMorgan Chase & Co and Wells Fargo filed objections to the plan, arguing that it went against the company's loan agreements. A Reuters article reported that the judge said that by approving this latest plan it would save the company $3 billion.
Under the terms of this new plan, a number of creditors, including Apollo Management AP, Crestview Partners, Oaktree Capital Group and Franklin Resources will retain a significant stake in Charter, while Allen would keep a 35 percent voting stake in the MSO.
- Cable Digital News has this article
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