Summary
This 8-K filing from Charter Communications, Inc. (CHTR) on May 8, 2009, provides crucial updates regarding its ongoing Chapter 11 bankruptcy proceedings initiated on March 27, 2009. The company announced that its Disclosure Statement, detailing a revised plan of reorganization, has been approved by the Bankruptcy Court and will be distributed to creditors. This approval is a significant step towards restructuring the company's debt and operations. Of particular interest to investors is the proposed rights offering of new Class A Common Stock. This offering is specifically for holders of Charter's 11.000% senior secured notes due 2015 (CCH I Notes) who meet specific 'accredited investor' or 'qualified institutional buyer' criteria by a certain deadline. Holders who do not qualify will receive shares of new Class A Stock equivalent to the value of the rights they would have received. Investors holding these notes are urged to consult their brokers for detailed instructions on how to certify their eligibility by the May 11, 2009 deadline.
Key Highlights
- 1Charter Communications, Inc. (CHTR) and subsidiaries are operating under Chapter 11 bankruptcy protection since March 27, 2009.
- 2The Bankruptcy Court has approved the company's Disclosure Statement and a revised plan of reorganization.
- 3The Disclosure Statement, detailing the reorganization plan, will be circulated to creditors eligible to vote.
- 4Charter plans to raise funds through a rights offering of new Class A Common Stock.
- 5The rights offering is primarily for holders of CCH I Notes who certify their status as 'accredited investors' or 'qualified institutional buyers'.
- 6Holders of CCH I Notes who do not meet eligibility criteria will receive new Class A Stock in lieu of rights.
- 7An Investor Certificate must be completed and submitted by 5:00 p.m. ET on May 11, 2009, to be eligible for rights or stock.