dslreports logo
 story category
Charter Tried, Failed To Sell Self
Hight debt load made carrier unattractive...
Before Charter stumbled into what's been a fairly complicated and disagreeable bankruptcy, the company tried -- and failed -- to sell itself, according to one company adviser. Charter's significant debt load made the company particularly unattractive as the credit market began to tighten. Charter's bankruptcy and reorganization aims to eliminate $8 billion in debt, though creditors have balked at the plan because the final plan would reinstate about $11 billion of its senior bank debt at below-market interest rates -- while Paul Allen would retain some control of the final operation.
view:
topics flat nest 
markopoleo
join:2003-04-02
Bonne Terre, MO

markopoleo

Member

So creditors balk at the plan..yet its expected to go ahead.

Why bring it up they balk at it. What company that files for bankruptcy the creditors won't balk at it? Captain obvious.
sonicmerlin
join:2009-05-24
Cleveland, OH

1 recommendation

sonicmerlin

Member

Re: So creditors balk at the plan..yet its expected to go ahead.

They're balking because under the plan Paul Allen would retain some control. That is entirely unfair to the investors who saw their money vanish into thin air. His stake in the company should be completely removed.

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

Re: So creditors balk at the plan..yet its expected to go ahead.

said by sonicmerlin:

They're balking because under the plan Paul Allen would retain some control. That is entirely unfair to the investors who saw their money vanish into thin air. His stake in the company should be completely removed.
I agree with that. You don't keep the captain of the Titanic on the bridge after causing the ship to sink. New management is needed and the bankruptcy judge should reject any deal that keeps him involved with the company after bankruptcy.

AMDUSER
Premium Member
join:2003-05-28
Earth,
ARRIS CM8200
ARRIS SB6183

AMDUSER to markopoleo

Premium Member

to markopoleo
It should also be noted that Charters filings with the court indicated no person / or group, other than Paul Allen would have voting power greater then Paul Allen.

Court filing: »www.kccllc.net/documents ··· 0002.pdf
-Warning - about 2 Meg download.

[Except that it isn't true.. see »www.bloomberg.com/apps/n ··· refer=us ]
Apollo and the other Equity holders will have more than 40% of the voting, and can vote for changes against Paul Allen.

pnh102
Reptiles Are Cuddly And Pretty
Premium Member
join:2002-05-02
Mount Airy, MD

pnh102

Premium Member

Adios Charter

Chapter 7 baby!
markopoleo
join:2003-04-02
Bonne Terre, MO

markopoleo

Member

Re: Adios Charter

said by pnh102:

Chapter 7 baby!
Charter won't just disappear fyi. It is considered by many to be the only broadband/cable tv provider around. In my area if Charter somehow stopped operations (won't happen because of legal stuff) a whole country goes dark. Missouri is like this all over sadly.

pnh102
Reptiles Are Cuddly And Pretty
Premium Member
join:2002-05-02
Mount Airy, MD

pnh102

Premium Member

Re: Adios Charter

Chapter 7 doesn't have to mean that services provided by Charter would come to an end. If Charter should enter Chapter 7, all of its service areas would be put up for sale by whoever wanted to buy them. These assets would probably be sold intact to some other cable company who would then continue to provide service.
markopoleo
join:2003-04-02
Bonne Terre, MO

markopoleo

Member

Re: Adios Charter

said by pnh102:

Chapter 7 doesn't have to mean that services provided by Charter would come to an end. If Charter should enter Chapter 7, all of its service areas would be put up for sale by whoever wanted to buy them. These assets would probably be sold intact to some other cable company who would then continue to provide service.
That is what I just said. And no company would buy them.

pnh102
Reptiles Are Cuddly And Pretty
Premium Member
join:2002-05-02
Mount Airy, MD

pnh102

Premium Member

Re: Adios Charter

said by markopoleo:

And no company would buy them.
You don't think a cable company would be interested in those assets? My guess is under Chapter 7 the debts incurred by Charter would be wiped out because of the sale of these assets. Depending on the money involved it might entice another cable provider to take over.
raIDERspeed
join:2002-07-26
Soledad, CA

raIDERspeed

Member

plz go away!

They bought my area 8 years ago and haven't did anything! they use to send flyers saying they are going to add this service and that service, but not a damn thing happen!

PolarBear03
The bear formerly known as aaron8301
Premium Member
join:2005-01-03

PolarBear03

Premium Member

Charter Tried, Failed To Sell Self

I tried the same thing once. Ironically, I got the same outcome.

morbo
Complete Your Transaction
join:2002-01-22
00000

morbo

Member

Re: Charter Tried, Failed To Sell Self

Paul Allen owns you

PolarBear03
The bear formerly known as aaron8301
Premium Member
join:2005-01-03

PolarBear03

Premium Member

Re: Charter Tried, Failed To Sell Self

Paul Allen bought be? That explains the STD...

tvjunkie
@charter.com

tvjunkie

Anon

pleeeeeezzzzzzzz just upgrade your service

Charter is sooooooooo behind the times here in Bellefontaine, ohio. only a single tuner dvr, and out of date motorola digiatal boxes from the 1990's...but there is no one else here to switch to except Directv....so i did, way better pic, and sound, and wow a dual tuner dvr!
Lazlow
join:2006-08-07
Saint Louis, MO

Lazlow

Member

Sale price?

I wonder what price they set when they tried to sell themselves? Usually when something does not sell it is becuase the price is to high.

AMDUSER
Premium Member
join:2003-05-28
Earth,

AMDUSER

Premium Member

Re: Sale price?

I'm not too sure.. it most likely had something to due with the assumed $4,000 per customer debt that came with.

For comparison Time Warner Cable has about $2,400-$2,500 per customer debt load. The same could be said about Comcast as well.
Lazlow
join:2006-08-07
Saint Louis, MO

Lazlow

Member

Re: Sale price?

Yeah, but one would need to consider that when one set the price. I get the impression that Allen did not really want it sold.
Sammer
join:2005-12-22
Canonsburg, PA

Sammer to AMDUSER

Member

to AMDUSER
said by AMDUSER:

I'm not too sure.. it most likely had something to due with the assumed $4,000 per customer debt that came with.
That makes what other cable companies are willing to pay for Charter about $zero.

Plattsburgh NY
@charter.com

Plattsburgh NY

Anon

Finally getting it right

I hope they pull something out, they are finally getting it right in my city. Look at my speeds, we only had 3meg available a year ago.