The Financial Times reports this morning that Charter Communications will file for bankruptcy protection on or before April 1 as part of a financial restructuring to reduce it's debt by $8 billion dollars.
The company serves 5.5 million customers in 27 states including our little corner of the world.
Charter is saddled with $21 billion in long-term debt after a decade of acquisitions and the man who controls the company, Microsoft co-founder Paul Allen has reached an agreement with the company's debt holders. Sources in the company say they will continue to operate the cable system and Allen will continue to be an investor and hold the largest voting interest.
The restructuring involves some debt holders exchanging debt for new notes, receiving a mix of cash, preferred stock or warrents to purchase common stock.
Current common stock holders will get nothing according to the Times.
The company also plans to write down $1.5 billion of its assets related to its cable franchise agreements.
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