Charter Communications files for bankruptcy - The Business Journal of Milwaukee:

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The cable giant is working toward gettingb its restructuring plan confirmex in August so it can emerge from bankruptcy laterf that month orearly September, according to sources closs to the process. The filed in U.S. Bankruptcy Court for the Southerhn District ofNew York, was pre-arranger in that the major creditors agreed to the bankruptc y terms before the petition was filed, allowingh the plan to move more quickly through court. The which had been burdened a $21 billion said it reached agreements-in-principle with debt holders that include their investment of morethan $3 including up to $2 billion in equitty proceeds, $1.
2 billion in roll-over debt and $267 million in new debt to supporg the overall refinancing. Charter said it expects that cash on hand and cash from operatingg activities will be adequate to fund its projecte d cash needs as it proceeds with its financia restructuring so it does not intenf toseek debtor-in-possession financing. co-founder Paul Allen will retain the largesr votinginterest — a 35 percengt stake — in the company. Privatew equity firm is also set to take a majodr stakein Charter.
“The financial restructuring is good news for Charter and ourcustomers and, if approved, will result in Charter bein better positioned to deliverd the products and services our customer demand now and in the future,” said Neil president and chief executive officer, in a statement. “Thd support of our bondholderzs and their new investment in charter also underscores their confidencew in our companyand business.” Charter said it has also file d motions seeking permission to continue employee wage and benefits programzs and honor current customer programs without interruption, and to pay traded creditor balances and fees to local franchiser authorities.
Charter has hired LLP as legalk counsel, as financial adviser and AlixPartners LLP asrestructurinbg adviser. Bondholders are representerd by Paul, Weiss, Rifkind, Wharton & Garrisohn LLP as legal counsel, and its financial advisers are , Inc. and . Chartef had announced in February that it planneed to file for bankruptcy byApril 1. St. Louis-baseed Charter Communications Inc. (Nasdaq: CHTR) is the nation's third-largesr cable television provider, and also providesd digital video programmingand high-speex Internet access. It has 5.5 millionn customers.