Charter Dueling With Annoyed Creditors Some of whom don't think company was honest about their financials... The other day Charter Communications rather cheerfully announced they'd be filing Chapter 11 as part of a restructuring that will trim about $8 billion from their $21 billion debt load. The "good news" (to use CEO Neil Smit's words) may not be so good, given the restructuring has annoyed some investors. Little Rock's Key Colony Fund has sued Charter for fraud, claiming the carrier misled investors by repeatedly claiming they had "sufficient liquidity through the year 2009 to meet its debt obligations." Meanwhile, according to Bloomberg, JPMorgan is opposing Charter's attempt to "reinstate" $11.8 billion in debt, which could force the carrier to take out additional loans in a time of tight credit. Charter also today received a delisting warning from NASDAQ. Despite all of the problems and fiscal wrangling, Charter customers shouldn't lose service. Probably.
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  DavidI have a son- d3Premium,VIP
join:2002-05-30
Granite City, IL
kudos:68 | is it just me..... or am I the only one that just doesn't see a way out for them? | |
|  |  tomkbPremium
join:2000-11-15
Tampa, FL
kudos:5 | Re: is it just me..... What? No deal like this can be complete without some bonuses! | |
| | | | | | | | | |  en102Canadian, eh?
join:2001-01-26
Valencia, CA | Re: is it just me..... One can only hope that all their 'bonuses' were tied to stock options. | |
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|  cdruGo ColtsPremium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:5
 ·Frontier FiOS
| said by David:or am I the only one that just doesn't see a way out for them? There's lots of ways out, and most of those ways somehow venture through bankruptcy proceedings. Once you file for bankruptcy, it becomes much harder for a creditor to sue and try to get something. It's not impossible to get something, but any type of settlement or judgement has to get the approval of the trustee and of the bankruptcy courts.
Bankruptcy isn't the end of the line for a company, it's just a hurdle. Their credit is already crap but there will still be investors that will look at it as an opportunity. Being delisted from the markets will also hurt, but again that just means that they they will need to find private capital going forward for a period. | |
| |  AMDUSERPremium
join:2003-05-28
Earth
kudos:1
 ·RoadRunner Cable
| Based on the Bankruptcy filing papers found here: »www.kccllc.net/documents/0911435···0001.pdf (page 10) the company has $24 billion and change in debt with $13 Billion or so in assets.
Even if the company reduces the debt by $8 billion, the company is financially insolvant.. the debt load would be $10-11 Billion. (Essentially about the same amount as the assets.)
If JPMorgan & Co. can prove the fraud allegations- this case may be converted into Chapter 7. (I'm not questioning they can.) Here is their complaint: »www.kccllc.net/documents/0911435···0185.pdf .
Attached is a copy of form 10K filed with the Securities and Exchange Commission. (See page 105 Long term debt, and assets sections.) Form 10K is used to detail a companies financial condition for year ending on December 31,2008. Listed in it, the debt amount listed is $21 billion with assets of about $13 Billion or so. Where about $3 Billion in additional debt came from is unknown. | |
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| | Repo time Creditors should be allowed to take whatever they want. I would raid the exec's office and take office chairs, Avaya phones, their executive mahogany desk, servers, projection units, commercial stove from cafeteria kitchen, etc. | |
| | rradina
join:2000-08-08
Chesterfield, MO | Re: Repo time I think we should raid their houses. I'm sure the key leaders at the company have made millions and millions of dollars. Although a drop in the bucket compared to the billions Charter owes creditors, anyone who makes millions of dollars should be on the hook to perform. If they don't perform, they have to give most of it back.
I'm not saying these people aren't talented and don't deserve to leverage their skills to become rich. I just think there should be regulation that ultimately ties their prosperity to the long term performance of the company. NOTE I said long term performance! I'm tired of Joe CEO waltzing in, merging with another company, laying off workers and jumping out when the stock spikes. There should be vesting schedules tied to long term performance. The live-for-tomorrow's stock price management practices have to stop. We need strategic, long-term thinkers!
Investors will also have to learn that they buy stocks for years, not days.
Of course I'm sure some investment guru will slam me and say I don't understand market dynamics. That this kind of regulation and investment thinking would destroy the free market and capitalism.
Well -- maybe they are right. But maybe that needs to happen because to me, it's clear that neither unbridled socialism or unbridled capitalism work. We need something different. It makes me want to vomit to think that the AIG leadership received millions just to show up for work!
And for some context, this is not the rant of an out-of-work, average American who struggles to make ends meet. I'm very fortunate and I'm tired of inefficient corporations and government wasting my hard-earned investment dollars and taxes.
Hey Charter -- want to own the TV and phone business in your territories? Try something revolutionary. Quit the used car haggling. Quit the six month promotions. Quit lowering prices when folks threaten to cancel their service. Why not offer cheaper packages (slower speeds, less channels, less phone features) to retain customers and LOWER PRICES on existing packages? I think you have a good product in St. Louis but it's TOO DARNED EXPENSIVE! Match Dish and DirectTV prices. Offer more HD channels! With VOD, you have a better product than the dish. If you match their price, you'll win customers. How about pricing your phone service at half the cost of AT&T? Why not? You already pay for the network with HSI and TV fees. | |
| | | | | | | | | | | Re: Repo time No whammy, no whammy, no whammy, stop!!  | |
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| Reviews:
 ·AT&T Midwest
| said by ninjatutle:Creditors should be allowed to take whatever they want. I would raid the exec's office and take office chairs, Avaya phones, their executive mahogany desk, servers, projection units, commercial stove from cafeteria kitchen, etc. Fortunately, for the investors, it makes more financial sense for them to 'bundle' the company together, and spin it off to the highest bidder.
Strangely enough, as much as I've had numerous complaints with Charter, their TECHNICAL position isn't too terrible. The biggest hurdle that Charter seems to suffer from atm, is the fact their marketing depts have no idea who they're selling their services to.
Many companies that are struggling for financial income, don't seem to realize that cutting the cost for the service will actually INCREASE revenue. With the way the economy is at the moment, consumers are looking more for the 'best bang for your buck', rather than spending extravagantly on something that isn't needed.
If charter were to cut their rates by 30-40% across the board (even for existing customers), their popularity would increase. You'll often find people less likely to complain, whine, and get overly upset for something that underperforms, if they paid very little for it (compared to existing prices now).
Liquidating the company's current assets in an investor take all auction situation won't help the current subscribers, and in the case of a fairly technological company will cost those same investors more money in the long run. | |
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AVonGaussPremium,MVM
join:2007-11-01
Boynton Beach, FL | Different Times... In different times, I think this would pass relatively quickly but in today's atmosphere I think we will be hearing about this a bit more and it will probably get a bit uglier. | |
| KoRnGtL15Premium
join:2007-01-04
Grants Pass, OR | A big IF........ They could even get loans in these tough times and with the massive debt load. I sure would not loan them any thing.... I said it before and I will say it again. After filing. I believe Charter will be in it for a few more months before they raise the surrender flag. | |
| | | right... Sue charter, good luck with that. Let me get this straight, you shitforbrains invested in a failing company, it goes belly up and you sue for your own stupidity. Why dont you just ask for a bailout like every other asswipe. | |
| |  h7
@charter.com | Re: right... said by Zen6 :
Sue charter, good luck with that. Let me get this straight, you shitforbrains invested in a failing company, it goes belly up and you sue for your own stupidity. Why dont you just ask for a bailout like every other asswipe.
Yeah it's become so passe' now if every big corp that doesn't know how to balance their books and cut the pay of their executives (not just fire all the people hired in the last 5 years), if they don't ask for money from the government just like all the others who have been irresponsible and overpriced, then they just get bought by an even bigger and assier corp that raises the prices and lowers the bar for quality standards even further. And BTW, to go off topic a tad but not that much, this is one of the reasons why people don't downgrade to 56k dialup connections like so many media outlets would want us to: so we can still be able to keep bagging on all the big corps, gov't, and media outlets that keep robbing us and spreading disinformation and bad ideas like wildfire.
h#7 | |
|
 Killa200Premium
join:2005-12-02
Southeast TN | Hoping for them... I honestly hope the best for them. Our one and only means of back hauling internet into this city is with their fiber solution... | |
| ski93
join:2005-02-14
Northwood, NH | Hey Charter!! SELL SELL SELL!!! Hey Charter of New England...Comcast is drooling over those properties of yours in Mass, NH and CT..God let Comcast take those properties..At least then their would be a company that could launch and service a product worth paying for... | |
| | | | Re: Hey Charter!! SELL SELL SELL!!! I AGREEE 10000000000%%%
CHarter GIVE IT UPP!!!!!!!! | |
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| | Hey Mr Dolan Buy charter and Re-form it..
The current exec's have run it into the ground.
--
Reach out and Tap someone! | |
| ltt75
join:2001-01-22
Hollis, NH | Town is interested in buying Charter assests Hollis NH wants to purchase in-town assests from Charter.
The town only has 2500 households, so many only 1500 have cable from Charter. | |
| | ncbillPremium
join:2007-01-23
Winston Salem, NC Reviews:
·AT&T Southeast
| Re: Town is interested in buying Charter assests Just do like every other city does.
Seize their assets via eminent domain, paying half (or less) of the tax value.
said by ltt75:Hollis NH wants to purchase in-town assests from Charter. The town only has 2500 households, so many only 1500 have cable from Charter. | |
| | | ski93
join:2005-02-14
Northwood, NH Reviews:
·Metrocast Commun..
| Re: Town is interested in buying Charter assests The town of Hollis wouldnt know the first thing about running a cable service...They can't run the polotics in that town..small town corrupt polotics. They would have to sever fiber from Charters headends and build their own and complete the rebuild process..Then service the said property..The tax payers would burn down the town hall if that happened..No way they could afford the idea.. | |
| | | | ski93
join:2005-02-14
Northwood, NH Reviews:
·Metrocast Commun..
| Re: Town is interested in buying Charter assests comcast has been drooling over the properties in southern NH central mass and ct region...I know they would love a fresh face to run the show..I know Comcast has it's detrators..but 42.95 per month for 12 by 2 service is not too shabby..39.99 for the phone and pretty good tv service..the on demand kicks ass, but channel choices and packages not so good..for the price..but once it all gets bundled at 100 to 120 per month I forget the cost of tv service...lol | |
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|  tschmidtPremium,MVM
join:2000-11-12
Milford, NH
kudos:4
·Fairpoint Commun..
 ·Hollis Hosting
| said by ltt75:The town only has 2500 households, so many only 1500 have cable from Charter. That is a pretty small customer base to support all the infrastructure needed to run a Cable Company.
Comcast services the area, do you know if they are interested in buying local Charter assets?
/tom | |
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