Posts Tagged ‘chapter 11’
April 25, 2009
Maybe there is hope for change:
“The U.S. Trustee, a Justice Department agency that oversees bankruptcies, objected to documents filed by bankrupt U.S. cable TV operator Charter Communications (CHTRQ.PK) explaining its reorganization plan, court documents show.
In a filing with the U.S. Bankruptcy Court for the Southern District of New York on Thursday, the U.S. Trustee said the Charter’s disclosure statement is “deficient” and “fails to contain adequate information.”
Article:
Tags:bankruptcy, chapter 11, Charter Cable, Linkedin
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April 1, 2009
I’ve included a link to the company’s Chapter 11 bankruptcy filing filed with the U.S. Bankruptcy Court in Southern New York. The most interesting disclosure was the number of subsidiaries.
It would seem to me that a company like Charter which isn’t a conglomerate like General Electric, a company that basically provides a limited number of services to its customers wouldn’t need to have so many subsidiaries.
I’m sure its done for tax purposes but I wonder if the cost of administering that many different entities and the lack of efficiency that would involve outweigh whatever the financial or tax benefits that accrue from forming so many subsidiary entities.
Bankruptcy filing courtesy Courthousenews
Tags:bankruptcy, chapter 11, Charter Communications, Linkedin
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February 14, 2009
After posting about the details on Charter Communications Chapter 11 filing announcement, I read this post from the Bankruptcy Beat which is from an ongoing bankrutpcy conference where Harvey Miller a top bankruptcy attorney talked about how recent changes to the Chapter 11 rules have worked against companies filing for protection. Miller said, ““Companies are avoiding Chapter 11 as the plague. It is the last option.”
Bankruptcy Beat posting
Tags:bankruptcy, chapter 11, Linkedin
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February 14, 2009
I got the answer to my question about what happens with the Charter’s missed $74 million interested payment. The company was working to get a group of creditors together to agree on the terms of the bankruptcy to insure a smooth Chapter 11 filing. Part of that agreement appears to be that the two Charter subsidiaries that had missed the interest payment will make it within the “grace period” which I assume is between their announcement of the filing and date when they actually file.
Article
Tags:bankruptcy, chapter 11, Chater Commuications, Linkedin, telecommunications
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February 11, 2009

Despite creating a brand name almost ubiquitous as Kleenex, Muzak is burdened by nearly $500 million in debt so the 75 year old company (that old?) is filing for Chapter 11 bankruptcy protection. The good news is that Chapter 11 will allow the company to restructure and the bad news is that we may have to endure elevator rides listening to the all-string version of “Smells like Teen Spirit” for another 75 years.
Bankruptcy Beat article
Tags:bankruptcy protection, chapter 11, Linkedin, Muzak
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February 7, 2009
Buried in this article about Charter Cable hiring a corporate turnaround expert, is an interesting tidbit. Charter had missed its $73 million interest payment on Jan 14th which was widely announced. It was subsequently announced that the company had hired a bankruptcy law firm and banker to handle their filing. It seemed such a filing would happen immediately. However, now the article suggests that Charter was sitting on $900 million in cash when it missed its interest payment and avoided payment in order to have enough cash to entice creditors to allow it file a prepackaged chapter 11 with the major creditors on board. It goes on to say that Charter has until Feb. 15th before it defaults on the loan. I wonder if just before the default, Charter will announce its chapter 11 filing.
Reuters article
Tags:bankruptcy, chapter 11, Charter Communications, Linkedin
Posted in Company News | 1 Comment »
January 24, 2009

In September of this year in the midst of the financial meltdown and Charter Communications own financial difficulties, that company’s board of directors boosted CEO Neil Smit’s pay $300k for the year. And this month, the company’s Executive Cash Award Plan, which had been scheduled to vest on Dec. 31, 2009, was partially distributed this month to top executives. Under that plan, Smit received $1.19 million on Jan. 13.
Meanwhile, the company has hired the law firm of Kirkland and Ellis as well as investment bank, Lazard Ltd. to handle their possible bankruptcy filing which this article suggests will be a chapter 11 re-organization.
Article
Tags:bankruptcy, chapter 11, Charter Communications, executive compensation, Lazard Ltd., Linkedin, Neil Smit, reorganization
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