UPDATE 3-Charter ups preferred shares in reorg plan

* Proposes issuing increasing preferred stock by $66 mln

* Dividend rate on the stock would rise in future years

* Judge sets aside five workdays for hearing (Adds details from Thursday's court hearing, byline)

By Phil Wahba and Caroline Humer

NEW YORK, July 16 (Reuters) - Bankrupt cable-television operator Charter Communications Inc (CHTRQ.PK) said on Thursday it filed a modified plan of reorganization that would increase the amount of new preferred stock it issues.

A judge will consider confirming the plan at a hearing scheduled to begin Monday in federal bankruptcy court in Manhattan. Many creditors and other groups, including the U.S. Securities and Exchange Commission, have filed objections to Charter's previous plan.

Under the amended plan, Charter would issue $138 million of preferred stock to certain noteholders, up from $72 million under its previous plan; increase the dividend rate on those shares in future years, and list the preferred shares on a stock exchange.

It would also change the terms of a litigation escrow account.

Charter said in a statement that except for those changes, its reorganization plan remains the same as the one it submitted in March.

Charter filed for bankruptcy protection in March under the weight of $21.7 billion of debt.

Under Charter's plan, debt held by secured creditors will be reinstated and unsecured claims paid in full, while common shareholders, except for its largest investor, Microsoft Corp (MSFT.O) co-founder Paul Allen, will be wiped out.

Allen, who is based in Seattle, is scheduled to give a videotaped deposition in New York on Friday, his lawyers said at a pre-trial hearing on Thursday.

Charter's lenders, including JP Morgan (JPM.N) and Wells Fargo (WFC.N), have objected to the plan, in which Charter has argued that its bank debt is effectively untouched and therefore its loans are not subject to repricing by the banks.

In a sign of how contested the confirmation process could be, the judge overseeing the case, James Peck, at Thursday's hearing set aside five full working days between July 20 and July 29 for the confirmation process.

The U.S. trustee, which overseas bankruptcy cases, objected to the case in June. In that objection, the trustee said the plan improperly released the company's officers, including Allen, from being sued over the company's collapse.

The SEC filed a similar objection on July 13, saying the plan should not be used to release nondebtors of liability to creditors or interest holders, which would effectively allow nondebtors to use a bankruptcy to their own benefit.