The U.S. Trustee overseeing the Charter Communications bankruptcy says the company's plan to reorganize improperly shields several of its officers and directors, including controlling chairman Paul Allen, from potential lawsuits for violating state or federal law.
At the very least, Charter officers and directors should not be released from lawsuits filed by equity holders, said Diana Adams, acting U.S. Trustee. In documents submitted to court Friday, Adams wrote that the "releasees appear to be acting in their own self-interest and seek to use those actions to justify enjoining equity holders, whose rights are extinguished under the plan."
Also, in Manhattan, U.S. Bankruptcy Judge James Peck has approved the "disclosure statement," or working plan of how the company will attempt to reorganize. Peck also decided various objections, including one made by JPMorgan Chase & Co., will be considered at a confirmation hearing where Peck will decide if the plan is valid in its current state, or if it must be amended.
Charter has proposed that once it reorganizes, secured claims will be reinstated and unsecured claims will be paid in full. The cable provider filed for bankruptcy protection in late March.
- See this Bloomberg article
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