Cable Technology Feature Article
March 27, 2009
Charter Files Bankruptcy
By Gary Kim, Contributing Editor
In a move that comes as no surprise, given the company’s own announced plans, Charter Communications has filed for Chapter 11 bankruptcy protection, allowing it to continue operations as usual, but wiping out equity holders.
The company has implemented a financial restructuring program that will reduce its debt by about $8 billion. Charter, one of the largest U.S. cable operators with 5.5 million customers, still has a long-term debt load of more than $20 billion, though.
Charter hasn’t posted an annual profit since going public in 1999. Its debt largely was acquired as the company went on a major acquisition spree that built the company into the fourth-largest U.S. cable provider.
The company has implemented a financial restructuring program that will reduce its debt by about $8 billion. Charter, one of the largest U.S. cable operators with 5.5 million customers, still has a long-term debt load of more than $20 billion, though.
Charter hasn’t posted an annual profit since going public in 1999. Its debt largely was acquired as the company went on a major acquisition spree that built the company into the fourth-largest U.S. cable provider.
Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.
Edited by Stefania Viscusi
