Feeds

Paul Allen's cable firm files for Chapter 11

Indebted to debtors

Build a business case: developing custom apps

Charter Communications Inc, which is controlled by Microsoft cofounder Paul Allen, will file for Chapter 11 bankruptcy protection by 1 April after striking a deal with senior debt holders yesterday.

The US cable firm said in a statement that it had reached an agreement with some of its creditors to help it reduce its debt by $8bn. Since 30 September 2008 Charter has been saddled with a debt load of around $21bn.

As part of that deal shareholders have been frozen out and will receive nothing, while debt holders and bondholders can expect a mix of new notes, equity and cash depending on how high up they rank on the firm’s list, said Charter.

“We are pleased to have reached an agreement with such a significant portion of our bondholders on a long-term solution to improve our capital structure,” said Charter president and CEO Neil Smit.

“We are committed to continuing to provide our 5.5 million customers with quality cable, internet and phone service, and through this agreement, we will be even better positioned to deliver the products and services our customers demand now and in the future.

“Moreover, the interest and support provided by our stakeholders with their new capital investment underscores their confidence in Charter and our business,” he said.

The company plans to make an overdue interest payment of $74m before a final deadline of 15 February.

Charter, said that as of 11 February it had more than $800m in cash on its balance sheet, also offered its outlook for the fourth quarter.

It expects to see pre-tax earnings to grow to 9.7 per cent to $620m and predicts revenue to climb seven per cent to $1.656bn. Charter will also record an impairment charge of $1.5bn for the quarter ended 31 December 2008.

The firm said it expected to be around 50,000 subscribers lighter, after 75,100 people dumped its basic video service. It was only slightly offset by signing up 22,300 net digital subscribers for the Q4 period. ®

The essential guide to IT transformation

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
BT customers face broadband and landline price hikes
Poor punters won't be affected, telecoms giant claims
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
EE plonks 4G in UK Prime Minister's backyard
OK, his constituency. Brace yourself for EXTRA #selfies
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.