Charter files bankruptcy, names restructuring chief – Portland Business Journal:

The cable giant is working toward getting its restructuring plan confirmed in Augusyt so it can emerge from bankruptcy later that month orearlhy September, according to sources close to the co-founder Paul Allen will retain the largesy voting interest — a 35 percentf stake — in the company. Allen also owns the Portlan d Trail Blazers. St. Louis-based Charter Communications Inc. (NASDAQ: CHTR) is the nation'xs third-largest cable television provider, and also providesw digital video programmingand high-speed Internet access.
Charter appointed attorney Gregory Doody as its chietf restructuring officer to oversee the financial restructuring processs and minimize the impacton day-to-day operations. Charter had Doody as a turnarounde specialistand adviser. Doody previouslyg led successful in-court and out-of-court restructurings, includinv at , a San Jose, Calif.-based energyg company, and , one of the nation's largest providersx of outpatient surgery, diagnostic imaging and rehabilitative services. HealthSouth president and CEO Jay Grinney credited Doody with helping the company redirect its focus in the wake ofa multibillion-dollar corporate accountingg fraud perpetrated under prior management.
The filed in U.S. Bankruptcy Court for the Southern Districty ofNew York, was pre-arranged in that the majot creditors agreed to the bankruptcy terms befores the petition was filed, allowing the plan to move more quicklu through court. The company, which had been burdenefd a $21 billion debt, said it reachesd agreements-in-principle with debt holders that include theid investment of morethan $3 billion, including up to $2 billionj in equity proceeds, $1.2 billionn in roll-over debt and $267 million in new debt to support the overallo refinancing.
Charter said it expects cash on hand and cash from operatinhg activities will be adequate to fund its projectefd cash needs as it proceeds with its financialo restructuring so it does not intend toseek debtor-in-possession “The financial restructuring is good news for Charter and our customerw and, if approved, will result in Charter being better positioned to deliver the producte and services our customers demandc now and in the future,” said Neil president and chief executive officer, in a “The support of our bondholders and their new investmen t in charter also underscores their confidence in our compan and business.
” Charter said it has also filed motionsz seeking permission to continue employee wage and benefits programs and hono r current customer programs without and to pay trade creditore balances and fees to local franchisw authorities. Charter has hired LLP as legal counsel, as financial advisefr and AlixPartners LLP as restructuring Bondholders are representedby Weiss, Rifkind, Wharton & Garrisom LLP as legal counsel, and its financial advisers are , Inc. and . Charted had announced in that it planneds to file for bankruptcy byApril 1.

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