Charter: Please Continue Hold for a Bankruptcy Exit
Reports earlier this week suggested that Charter could make its exit as early as Nov. 2 and as late as Dec. 15. (See Charter's Chapter 11 Adds a Page.)
Charter, the fourth-largest incumbent U.S. MSO with 5.5 million subs, filed for bankruptcy protection in March, looking to shave $8 billion from its $21.7 billion debt load and obtain more than $3 billion for refinancing and new capital. (See Charter Turns to Chapter 11.)
The pre-arranged plan has hit a few snags along the way, however.
JPMorgan Chase & Co and Wells Fargo opposed the prearranged plan, claiming it violates Charter's earlier loan agreements. The judge argued that a debt reinstatement would save the MSO $3 billion, outweighing the $375 million in restitution that's coming to Charter chairman Paul Allen, according to Reuters.
The plan, as approved, will hand over control to a handful of creditors, including Apollo Management AP, Crestview Partners, Oaktree Capital Group, and Franklin Resources. Allen, meanwhile, is expected to maintain a 35 percent voting stake in the St. Louis-based MSO.
— Jeff Baumgartner, Site Editor, Cable Digital News
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