April 22, 2009 / 9:19 PM / 9 years ago

UPDATE 1-Charter to raise funds by issuing new shares

NEW YORK, April 22 (Reuters) - 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 Wednesday.

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)

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