The all new
CBS News App for Android® for iPad® for iPhone®
Fully redesigned. Featuring CBSN, 24/7 live news. Get the App

Charter Plans To Sell New Shares To Bondholders In Bid To Raise Funds

This story was written by David Kaplan.
Bankrupt cable operator Charter Communications (NSDQ: CHTR) plans to raise new funds by issuing new common shares to some of its bondholders, Reuters reported, citing an SEC filing. The St. Louis-based company 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. No date for the sale has been set yet.

In March, a month after it started the process of filing for Chapter 11 bankruptcy protection, Charter began negotiating a partial sale with PE firm Apollo Management. Charter, the number four cable company in the U.S., has been working on agreements with some of its creditors lowering its $21 billion in debt by roughly $8 billion.

By David Kaplan