* Charter completes financial restructuring
* Cuts debt by 40 percent, or $8 billion
* Existing shares of common stock have been canceled
* Paul Allen will retain largest voting interest
(Updates with company confirmation of reorganization)
By Chelsea Emery
NEW YORK, Nov 30 Cable operator Charter
Communications Inc CHTRQ.PK has completed its financial
restructuring and has emerged from Chapter 11 bankruptcy after
cutting its debts by 40 percent, the company said on Monday.
The fourth-largest U.S. cable operator filed for bankruptcy
in March after working out a debt restructuring plan in advance
with some bondholders.
"It is the largest pre-negotiated case ever completed,"
said Richard Cieri, an attorney with Kirkland & Ellis LLP who
represents Charter Communications. "We are very pleased the
plan has now gone effective and the company has achieved a very
Charter cut its debt load by 40 percent, or $8 billion,
under the plan. It is also poised to generate positive cash
flow by reducing annual interest expense by more than $830
Existing Charter common shares have been canceled. The
company said in a statement it intends to apply for listing of
new common stock on the Nasdaq stock market "not earlier than
45 days after emergence."
The company said it would receive $1.6 billion in new
capital from an equity rights offering.
In addition, Charter will exchange existing CCH II notes
for about $1.7 billion of new 13.5 percent CCH II notes due
The current debt of Charter subsidiaries CCO Holdings LLC
and Charter Communications Operating LLC will be reinstated
under pre-existing pricing and maturity dates, the company
Charter is controlled by Microsoft Corp (MSFT.O) co-founder
Paul Allen. Allen will be able to appoint four board members of
the new company. Bondholders will be able to appoint four board
"Paul Allen will continue as an investor and will retain
the largest voting interest in the company," Charter said in a
(Reporting by Chelsea Emery; Editing by Derek Caney and John
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