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Charter Files Chapter 11 Bankruptcy
Charter CEO: Good news, everybody!
by Karl Bode 11:02AM Friday Mar 27 2009 Tipped by FFH See Profile
As expected, Charter Communications this morning filed for Chapter 11 bankruptcy, as part of a restructuring effort the company says will reduce their $21.7 billion debt load by $8 billion. The company had previously stated they'd be filing before April 1. Charter CEO Neil Smit says he's optimistic and that customers have nothing to worry about. "The financial restructuring is good news for Charter and our customers and, if approved, will result in Charter being better positioned to deliver the products and services our customers demand now and in the future," says Smit. Charter has appointed Gregory Doody as its chief restructuring officer to oversee restructuring and prevent any disruptions to normal operations.

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Hpower
Roflmao

join:2000-06-08
Glendale, CA

Good news I guess?

I guess this is a good thing for them. Let's see what happens. I got a bad feeling that they will not be able to meet their goal of reducing their debt by $8 billion.
--
The Internet is about to go down....it is actually.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

1 edit

Re: Good news I guess?

They will. They'll just wipeout their investors. They'll simply declare their old stock worthless, then issue new stock.

Companies can do things consumers can't. Consumers can't tell people they owe money too to get lost, never going to pay it back, no penalties. Companies can. They just reorganize and sometimes change the name slightly and act like they are a whole new entity with a clean slate--- except they keep the assets of the defunct company.

They're be some lawsuits, of course, but in the end Charter should discharge much of it's debt and get off pretty scot free.

Yep, told ya so:

"The cable television operator said last month it would restructure its debt under Chapter 11 bankruptcy protection on or before April 1 in a deal with senior creditors that wipes out common shareholders."

Isn't it nice? Tell the owners (stockholders) to go shove it, we owe you nothing, and we're never paying you back.

Imagine you could just call up your bank and say "By the power vested in me, by myself, for myself, effective this date, I owe you nothing, I'm keeping the house, car, land and all contents, and I get full deeds. See ya, wouldn't wanna be ya." Oh and with no penalties to boot. No credit damage.

To me this seems inherently wrong.

--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
ender7074

join:2006-11-21
Saint Louis, MO

Re: Good news I guess?

Sounds just like something Charter would do. Thats the type of people that run the place.

jester121
Premium
join:2003-08-09
Lake Zurich, IL
said by KrK:

To me this seems inherently wrong.
Probably to a lot of people; unfortunately no one learns about this kind of thing in school, but this is a fundamental characteristic of corporations. In exchange for sharing in the profits and growth of the company, you risk your money as a shareholder but are likewise shielded from liability beyond your investment amount.
rradina

join:2000-08-08
Chesterfield, MO
said by KrK:

...
Imagine you could just call up your bank and say "By the power vested in me, by myself, for myself, effective this date, I owe you nothing, I'm keeping the house, car, land and all contents, and I get full deeds. See ya, wouldn't wanna be ya." Oh and with no penalties to boot. No credit damage.

To me this seems inherently wrong.

Replace bank with husband and unmarried men should be afraid. Very afraid.

Tzale
Proud Libertarian Conservative
Premium
join:2004-01-06
NYC Metro
said by KrK:

They will. They'll just wipeout their investors. They'll simply declare their old stock worthless, then issue new stock.

Companies can do things consumers can't. Consumers can't tell people they owe money too to get lost, never going to pay it back, no penalties. Companies can. They just reorganize and sometimes change the name slightly and act like they are a whole new entity with a clean slate--- except they keep the assets of the defunct company.

They're be some lawsuits, of course, but in the end Charter should discharge much of it's debt and get off pretty scot free.

Yep, told ya so:

"The cable television operator said last month it would restructure its debt under Chapter 11 bankruptcy protection on or before April 1 in a deal with senior creditors that wipes out common shareholders."

Isn't it nice? Tell the owners (stockholders) to go shove it, we owe you nothing, and we're never paying you back.

Imagine you could just call up your bank and say "By the power vested in me, by myself, for myself, effective this date, I owe you nothing, I'm keeping the house, car, land and all contents, and I get full deeds. See ya, wouldn't wanna be ya." Oh and with no penalties to boot. No credit damage.

To me this seems inherently wrong.

Sounds like capitalism to me.... Don't invest if you don't want to accept the risk.
--
They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Good news I guess?

said by Tzale:

Sounds like capitalism to me.... Don't invest if you don't want to accept the risk.
Sounds like a scam to me. All you have to do is get people to invest, then you can make some really bad business choices and wipe them out--- and you don't suffer.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

Tzale
Proud Libertarian Conservative
Premium
join:2004-01-06
NYC Metro

1 edit

Re: Good news I guess?

said by KrK:

said by Tzale:

Sounds like capitalism to me.... Don't invest if you don't want to accept the risk.
Sounds like a scam to me. All you have to do is get people to invest, then you can make some really bad business choices and wipe them out--- and you don't suffer.
Sounds to me like the investors who are being 'scammed' don't know what they are getting into.... Perhaps people should spend more time reading about how the stock market works? It's been this way for a long time... I don't want them to change anything now. Besides, if a company declares bankruptcy and their stock didn't immediately have no value, then it would pretty much by market forces from people selling immediately!

-Tzale
--
They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.
Mce Saint
Premium
join:2007-10-03
Saint Louis, MO
quote:
Imagine you could just call up your bank and say "By the power vested in me, by myself, for myself, effective this date, I owe you nothing, I'm keeping the house, car, land and all contents, and I get full deeds. See ya, wouldn't wanna be ya." Oh and with no penalties to boot. No credit damage.
Nice story. Except that for secured creditors it doesn't work like this.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Good news I guess?

said by Mce Saint:

Nice story. Except that for secured creditors it doesn't work like this.
Yeah, but stockholders aren't typically secured creditors.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
Mce Saint
Premium
join:2007-10-03
Saint Louis, MO

Re: Good news I guess?

But banks - to which the poster was referring - usually are.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Good news I guess?

Read the post again, all he says is he doubts they'll be able to lower the debt by 8 billion, and I reply yes they will, they're wiping out the stockholders.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

BabyBear
Keep wise ...with Nite-Owl

join:2007-01-11

1 recommendation

Services customers demand!

Neil Smit said "We just want to put a CAP on our debt obligations like we did to our customer's internet connections. I should get a raise for coming up with this idea. Some one remind me to put in a call to Paul Allen for my 8.6 million salary before we run out of cash."

Nightfall
My Goal Is To Deny Yours
Premium,MVM
join:2001-08-03
Grand Rapids, MI
Reviews:
·ooma
·Comcast
·Callcentric
·Site5.com

Re: Services customers demand!

said by BabyBear:

Neil Smit said "We just want to put a CAP on our debt obligations like we did to our customer's internet connections. I should get a raise for coming up with this idea. Some one remind me to put in a call to Paul Allen for my 8.6 million salary before we run out of cash."
You aren't kidding on that.

»www.reuters.com/article/marketsN···20090318

McSummation
Mmmm, Zeebas Are Tastee.
Premium,MVM
join:2003-08-13
Fort Worth, TX
kudos:2

Re: Services customers demand!

It also says:
quote:
... a deal with senior creditors that wipes out common shareholders
Does that mean that anyone that owned Charter stock just lost it?

BabyBear
Keep wise ...with Nite-Owl

join:2007-01-11

3 edits

Re: Services customers demand!

Saw somewhere Paul Allen will still have a 35% controlling(voting) interest(used to be 50%).

Paul Allen's midas touch.

Allen owns part of more bankrupt companies than the taxpayers. Speaking of which looks like thanks to Stimulus, Paul gets a $1 billion tax break.

spewak
R.I.P Dadkins
Premium
join:2001-08-07
Elk Grove, CA
kudos:1
Reviews:
·SureWest Internet
said by Nightfall:

said by BabyBear:

Neil Smit said "We just want to put a CAP on our debt obligations like we did to our customer's internet connections. I should get a raise for coming up with this idea. Some one remind me to put in a call to Paul Allen for my 8.6 million salary before we run out of cash."
You aren't kidding on that.

»www.reuters.com/article/marketsN···20090318
Generous bonuses and incentive pay to follow for leading Charter out of bankruptcy. Although those same retards, errr Executives, got Charter into this mess in the first place!!!
--
The weekend is here, grab a can of beer!

DataDoc
My avatar looks like me, if I was 2D.
Premium
join:2000-05-14
Martinsburg, WV
Reviews:
·Suddenlink
It's conditional:
"Under its Value Creation Plan, Charter pay Chief Executive Neil Smit up to $8.5 million IF the company successfully restructures AND IF he reaches specified targets during each of the three years following the company's emergence from restructuring."
jhenager

join:2008-01-08
Buford, GA
I was constantly trying to get what I paid for. Extremely unreliable service, and the call center representatives' troubleshooting skills were limited to rebooting the router. After about a month, I learned to do that first and tell them I had already done that, but it didn't help.
They would still doggedly try that without success.
The last straw was one Saturday I spent three and a half hours trying to get it fixed. I was hung up on, given a disconnected number to call, and eventually just gave up. Unbelievably bad.

Guy Incognito

@teksavvy.com

Chapter 11? O RLY?

So now Charter can fire its veteran employees and replace them with low wage jockeys to save money. Worked for Circuit City.

t0tAL

@charter.com

Re: Chapter 11? O RLY?

said by Guy Incognito :

So now Charter can fire its veteran employees and replace them with low wage jockeys to save money. Worked for Circuit City.
They will probably trim fat from the middle management areas, beef up the areas that produce, and get rid of the garbage.
jhenager

join:2008-01-08
Buford, GA

They deserve to go down

"St. Louis-based Charter (CHTR), controlled by Microsoft co-founder Paul Allen, has said it plans to continue operations as usual. "

Yeah, good plan. Business as usual is what caused me to quit them. Their service absolutely sucked. It was down almost every week. Their customer support was amazingly bad and incompetent. They got my business by false advertising, and because I went back to BellSouth, my service is now reliable again.

Probably the worst company I have ever dealt with in my life. I would refuse any service from them even if they paid me.
A -1 on a scale of 1 (worst) to 10 (best).

footballdude
Premium
join:2002-08-13
Imperial, MO

Doody?

Charter has appointed Gregory Doody as its chief restructuring officer

Seriously? The guy's name is Doody?
--
It's a trick. Get an axe. - Ash

BabyBear
Keep wise ...with Nite-Owl

join:2007-01-11

1 recommendation

Re: Doody?

said by footballdude:

Seriously? The guy's name is Doody?
Hey, at least his parents didn't name him Howdy.

RARPSL

join:1999-12-08
Suffern, NY

Re: Doody?

said by BabyBear:

said by footballdude:

Seriously? The guy's name is Doody?
Hey, at least his parents didn't name him Howdy.
Or Double (who was Howdy's Stand-In).

ninjatutle
Premium

join:2006-01-02
San Ramon, CA

BBR CO-OP

People here should pool some money together and buy a bankrupt cable/internet/wireless company. People here are always talking about how companies should run their business and think they could do better...

Buy in amount would be something like 100k. Bring 500k and you get a corner office and the nearest parking space. If you can only bring 50 grand to the table, you can be in charge of supervising the call centers in India and you have to provide your own airfare and lodging when you get there.

BabyBear
Keep wise ...with Nite-Owl

join:2007-01-11

Re: BBR CO-OP

said by ninjatutle:

People here should pool some money together and buy a bankrupt cable/internet/wireless company.
I would but my Octopus is in the 'shop' and when the bill comes think I will need all my pennies for the bill. Plus, we'd just spent all our days buying up other small providers and ignoring our existing customer base like Charter did. Where is the investment return in that?
hoyleysox
Premium
join:2003-11-07
Long Beach, CA
The stock is currently trading for $.03 which makes the market cap for the company is $12.43 million. For $500k you could own 4% of the common stock. However creditors, bondholders and the bankruptcy court technically own the bankrupt company.
zed2608
Premium
join:2007-09-30
Cleveland, TN
kudos:1

http://www.kccllc.net/charter

you can follow the case

»www.kccllc.net/charter
alfonzotan

join:2009-03-27
Smyrna, GA

Cool

Awesome. I canceled my Charter service yesterday, partially in protest over download caps. Glad I could play my part!

morbo
Complete Your Transaction

join:2002-01-22
00000

1 recommendation

Re: Cool

sadly, it was your cancellation that pushed them over the edge.
PsychoSy

join:2001-01-15
Monroe, MI
Reviews:
·Charter

1 edit

Like hell

No, it was Paul Allen's entitlement to tax cuts, SUVs, yachts, multiple McMansions (with maids and gardeners of a certain ethnicity) ... and being very liberal with Charter's credit card when he went on that buying spree many years ago. All of that happy crappy -- and thinking we'd enable and bankroll it without complaint -- is what sent them over the cliff.

fonzbear2000
Premium
join:2005-08-09
Saint Paul, MN

LMAO!!!

How many times have they filed for bankruptcy now? About 97395735984?
megarock

join:2001-06-28
Catawissa, MO

hmmm

So in other words as soon as they offer stock again I should buy in - keep it while it becomes worth something but at the first sign of trouble dump it like my #2 in the toilet and run.

Ok, got it.

cork1958
Cork
Premium
join:2000-02-26

After 9 years

After 9 years with Charter, I finally made the move to Verizon DSL about a month ago. Was finally able to get their advertised speeds and being the cheapskate I am, I was gone.

Actually,
With Charter having been discussing caps and other things, I thought I'd try Verizon one more time. Turns out I'm getting 2.1mbps more download and 128kbps more upload, and for $7 less a month!!

I did my part to keep Charter afloat!!
--
The Firefox alternative.
»www.mozilla.org/projects/seamonkey/
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

real meanings?

A cable company being able to unload billions in debt doesn't necessarily make the company better serve it's customers. the cable industry as a whole is not in a very healthy position. Video subscribership is falling off due to economic woes & popularity of on-demand internet video from a variety of sources be it legal or not, $ paid $ or not. Will vendors & lenders, employees and others they do business with be all that more sympathetic to a company who will probably be cash positive after bankruptcy? Time will tell. Good luck thinking this will bring charter customers 50-100+mbits of unlimited symmetric broadband for under $100/month, cheaper video/phone service or some other fantasy.

Many cable ISP's either have or are strongly considering/implementing their options to limit broadband usage. Telcos sofar are resisting a similar strategy for now, but are not immune to poor quality deployments or talking out of both sides of their mouth about working with the riaa/mpaa when it comes to maintining customers vs censorship of copyrighted data (at&t).