Yesterday we noted that Charter was reconfiguring their executive compensation, in order to keep key players on board ahead of an expected reorganization. Since then, several concerned Charter employees have contacted us to note the company yesterday missed a $74 million loan interest payment (see SEC filing) that was due yesterday. The interest was on a principal totaling $1.15 billion, and now requires payment within thirty days or Charter faces default. A Charter press release tries to ease worried minds.

"We are engaged in discussions with our bondholders aimed at improving the Company's capital structure," said Neil Smit, President and Chief Executive Officer. "We've made significant progress over the last several years with regard to operational improvements and we hope to make similar progress with regard to our capital structure." Smit insists that discussions with bondholders "do not affect our commitment to continuing to offer customers reliable service, enhanced product offerings and quality care."

Charter has $21 billion in debt, which is 20% of the entire cable industry's debt load, and consistently ranks near the bottom of the pack in consumer satisfaction rankings. The cable company has not been profitable since the company went public in 1999. Charter's stock also hasn't traded above $5 since January 2004, and the cable company is often among the last carriers to implement substantive upgrades because of the MSO's heavy debt load -- though the CEO seems to do ok.

Should Charter reorganize, it's not expected to impact customers, though some smaller markets may find themselves sold to other carriers. Low and mid-level employees may not be so lucky -- the company recently announcing the firing of 75 employees, with more potentially on the way. Expect a bankruptcy protection filing sometime next week.