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