July 13, 2009 / 10:13 PM / 8 years ago

Charter creditor Wells Fargo seeks sealed objection

NEW YORK, July 13 (Reuters) - Wells Fargo Bank NA (WFC.N), one of bankrupt Charter Communications Inc’s CHTRQ.PK creditors, sought court permission on Monday to file a sealed objection to the bankrupt cable-television operator’s reorganization plan ahead of a hearing next week.

The objection would contain materials “it would not want to be made public” and were “highly sensitive and confidential” regarding one or more of the parties involved, Wells Fargo said in court documents filed in federal bankruptcy court in Manhattan.

Wells Fargo, which is acting as an agent for third-lien lenders to CCO Holdings LLC, a unit of Charter, previously objected in April to the plan, saying it was too risky and could potentially fall apart.

A confirmation hearing is set for July 20 at which the court will decide whether to approve Charter’s pre-arranged plan, including the reinstatement of $11.8 billion in debt.

Charter, which is controlled by Microsoft Corp (MSFT.O) co-founder Paul Allen, filed for bankruptcy protection in March under the weight of $21.7 billion in debt.

Under Charter’s proposed plan, debt held by secured creditors will be reinstated and unsecured claims paid in full, while shareholders, except for Allen, will be wiped out. Allen is set to get up to 7 percent of the reorganized company’s equity and keep the largest voting interest in the company, at 35 percent.

On Friday, Charter asked the court for a 120-day extension of the period during which it has exclusive control of its affairs as a precaution, because its current “exclusivity period” ends July 25.

The bankruptcy case is In re Charter Communications Inc, U.S. Bankruptcy Court, Southern District of New York, No 09-11435. (Reporting by Phil Wahba; editing by Andre Grenon)

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