8-KLeadership ChangesFinancial EventsRegulation FD+2

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Bankruptcy Filing (Mar 27, 2009)

Filed March 27, 2009For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) announced on March 27, 2009, that the Company and certain of its subsidiaries have voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. This filing allows the company to continue operating its business as debtors in possession while it seeks to restructure its balance sheet and obligations. The bankruptcy filing triggered the acceleration of financial obligations across numerous debt instruments, totaling a substantial amount of debt. While these obligations are technically accelerated, the company believes the bankruptcy stay will prevent immediate enforcement. The company has also appointed Gregory L. Doody as Chief Restructuring Officer to lead the restructuring efforts, with specific compensation terms outlined, including a base salary and a potential emergence bonus.

Key Highlights

  • 1Charter Communications, Inc. and subsidiaries filed for Chapter 11 bankruptcy on March 27, 2009.
  • 2The company will continue to operate its business as debtors in possession under court supervision.
  • 3The bankruptcy filing accelerated financial obligations under various debt instruments, including senior notes and credit facilities.
  • 4Significant amounts of debt are outstanding across numerous tranches, including convertible senior notes, senior notes, senior discount notes, and credit agreement loans.
  • 5Gregory L. Doody was appointed Chief Restructuring Officer to oversee the restructuring process.
  • 6Mr. Doody's compensation includes a monthly base salary and a potential emergence bonus, subject to certain conditions and potential reduction.
  • 7Information regarding the Chapter 11 cases, including the proposed plan of reorganization, is available on Charter's website.

Frequently Asked Questions

This 8-K filing is primarily to report that Charter Communications, Inc. and certain of its subsidiaries have voluntarily filed for Chapter 11 bankruptcy protection. This action allows the company to continue operations while it reorganizes its debt and business structure.

Filing for Chapter 11 bankruptcy means that Charter Communications and its subsidiaries will continue to operate their businesses under the supervision of the U.S. Bankruptcy Court. This process allows them to restructure their debts and operations with the goal of emerging as a financially healthier company. A bankruptcy 'stay' will generally prevent creditors from taking immediate action to collect debts.

The filing triggered acceleration of financial obligations across a wide array of debt instruments. While the exact total is not explicitly summed in the filing, the list includes numerous tranches of convertible senior notes, senior notes, senior discount notes, and credit agreement loans, with individual principal amounts listed ranging from $1 million to over $8.2 billion for the credit facilities.

Gregory L. Doody has been appointed as the Chief Restructuring Officer to lead the restructuring efforts. He will be responsible for evaluating and implementing strategic options to reorganize the company's balance sheet.