8-KLeadership ChangesMaterial AgreementsFinancial Events+5

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Material Agreement (Dec 4, 2009)

Filed December 4, 2009For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed this Form 8-K on December 4, 2009, to announce the consummation of its Chapter 11 Plan of Reorganization, effective November 30, 2009. This marks a significant transition for the company, emerging from bankruptcy proceedings initiated on March 27, 2009. The report details the terms of the new debt issued, the cancellation of old debt and equity, and the issuance of new equity and warrants. Key financial implications for investors include the issuance of $1.77 billion in new 13.5% Senior Notes due 2016 by CCH II, LLC, and the cancellation of all pre-bankruptcy common stock and various series of notes. New Class A and Class B common stock, preferred stock, and multiple series of warrants to purchase Class A stock have been issued to various stakeholders, including creditors and Mr. Paul G. Allen's designees, under the terms of the confirmed plan. The company's board of directors has been reconstituted, and amendments to executive employment agreements have been made in conjunction with the reorganization.

Key Highlights

  • 1Charter Communications has successfully emerged from Chapter 11 bankruptcy proceedings as of November 30, 2009.
  • 2CCH II, LLC issued $1.77 billion in new 13.5% Senior Notes due November 30, 2016.
  • 3All previously outstanding common stock of Charter Communications, Inc. (Old Common Stock) and Preferred Share Purchase Rights were cancelled.
  • 4Numerous existing debt indentures and their associated notes and debentures were terminated and cancelled.
  • 5New Class A and Class B common stock has been issued to various stakeholders, including creditors and specific investors like CII (an affiliate of Mr. Paul G. Allen).
  • 6Multiple series of warrants to purchase shares of New Class A Stock were issued to holders of CIH Notes, CCH Notes, and CII.
  • 7The company's Board of Directors has been reconstituted with new members, including the appointment of Robert Cohn by Franklin Advisors, Inc.

Frequently Asked Questions

This Form 8-K is filed to announce the consummation of Charter Communications, Inc.'s Plan of Reorganization under Chapter 11 of the U.S. Bankruptcy Code. It signifies the company's official emergence from bankruptcy as of November 30, 2009.

All existing common stock (Old Common Stock) and Preferred Share Purchase Rights were cancelled. Additionally, all obligations under a significant number of previously issued debt indentures were terminated, and the associated notes and debentures were cancelled as part of the reorganization.

Charter Communications has issued new debt in the form of $1.77 billion of 13.5% Senior Notes due 2016. It has also issued new equity, including Class A and Class B common stock, and several series of warrants to purchase Class A common stock to various creditors and specific parties involved in the restructuring.

Key parties include CCH II, LLC and CCH II Capital Corp. who issued the new notes. New equity and warrants have been issued to various creditors holding CCH I Notes Claims, CIH Notes, and CCH Notes. Charter Investment, Inc. (CII), an affiliate of Mr. Paul G. Allen, is also a significant recipient of new Class B stock and warrants.