Charter Communications emerges from pre-packaged bankruptcy case

By Caroline Salls

Pittsburgh, Nov. 30 - Charter Communications, Inc. emerged from bankruptcy when its pre-packaged plan of reorganization took effect on Monday, according to a company news release.

The company said the plan, which was confirmed on Nov. 17 by the U.S. Bankruptcy Court for the Southern District of New York, significantly improves its capital structure by reducing debt by roughly 40%, or $8 billion.

"This successful financial restructuring is a significant accomplishment and makes Charter a stronger company for the benefit of our customers, vendors, employees and the communities we serve," president and chief executive officer Neil Smit said in the release.

"We have restructured our balance sheet without losing sight of serving our customers and maintaining our business relationships.

"Charter will remain focused on further enhancing the customer experience and is positioned to generate free cash flow."

As previously reported, the current debt of company subsidiaries CCO Holdings, LLC and Charter Communications Operating, LLC will be reinstated under pre-existing pricing and maturity dates.

Charter will receive $1.6 billion in proceeds from an equity rights offering to support the overall refinancing and the reduction of about $8 billion of debt.

In addition, Charter said it will exchange existing CCH II notes for $1.7 billion of new 13.5% CCH II notes due 2016.

Existing shares of the company's common stock have been cancelled, and Paul Allen will continue as an investor and retain the largest voting interest in the company.

The company said it plans to apply for listing of its new common stock issued under the plan on the Nasdaq Stock Market LLC not earlier than 45 days after emergence.

Charter Communications is a St. Louis-based provider of video services, high-speed internet services and telephone services to residential and commercial customers on a subscription basis. The company filed for bankruptcy on March 27, 2009. Its Chapter 11 case number is 09-11435.

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