NEW YORK, April 22 Charter Communications Inc
CHTRQ.PK, the cable operator currently going through a
bankruptcy process, plans to issue new common shares to some of
its bondholders, according to a regulatory filing on
The cable operator, controlled by billionaire Paul Allen,
said in the filing with the U.S. Securities and Exchange
Commission that it intends to raise new funds through the
issuance of the shares. It will issue the rights to buy the
shares of Class A Common Stock to holders of 11 percent senior
notes issued by its units CCH I and CCH I Capital Corp.
The company said the distribution dates of the rights and
the new Class A stock were not known at this time.
Charter, the fourth largest U.S. cable operator, filed for
bankruptcy last month after buckling under the weight of $21.7
billion in debt.
Under Charter's proposed debt reorganization plan, it will
reduce its debt load by around $8 billion and existing
shareholders will lose their stakes.
The company has to date raised about $3.5 billion of
capital and debt financing, which includes $2 billion in
equity, refinancing about $1.2 billion in senior debt and
raising $267 million in new debt.
The case in re: Charter Communications Inc., U.S.
Bankruptcy Court, Southern District of New York, No. 09-11435.
(Reporting by Yinka Adegoke)