Charter files for bankruptcy, names restructuring chief - Business First of Louisville:

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Charter, a cable television and high-speed Internegt provider that purchased the assetwof Littleton, Colo.-based in early 2002, employedr about 400 employees at its Louisville offices, according to 2008 data from the Kentucky Departmen t of Workforce Development. The office is located at 10300 Ormsby Park Charter is working toward getting its restructuring plan confirmed in August so it can emerge from bankruptcy later that month orearly September, accordingt to sources close to the process. The company appointecd attorney Gregory Doody as its chieft restructuring officer to oversee the financial restructurintg process and minimize the impacton day-to-day operations.
Chartefr had Doody as a turnaround specialisttand adviser. Doody previously led successful in-court and out-of-court restructurings, including at , a San Jose, Calif.-baseed energy company, and , one of the nation's largestg providers of outpatient surgery, diagnostic imaging and rehabilitativ services. HealthSouth president and CEO Jay Grinney credited Doodty with helping the company redirect its focus in the wake ofa multibillion-dollar corporate accounting fraud perpetrated under prior management. The Chapted 11 petition, filed in U.S.
Bankruptcy Coury for the Southern District of New was pre-arranged in that the major creditor s agreed to the bankruptcy terms before the petitiobn was filed, allowing the plan to move more quicklyg through court. The company, which had been burdenedc a $21 billion debt, said it reache d agreements-in-principle with debt holders that include their investment of morethan $3 including up to $2 billio n in equity proceeds, $1.2 billion in roll-oved debt and $267 million in new debt to supporf the overall refinancing.
Charter said it expects that cash on hand and cash from operatingf activities will be adequate to fund its projectefd cash needs as it proceeds with its financiap restructuring so it does not intenx toseek debtor-in-possession financing. co-founder Paul Allemn will retain the largest voting interest a 35 percentstake — in the company. Private equith firm is also in “The financial restructuring is good news for Charter and ourcustomerz and, if approved, will result in Charter being better positioned to deliver the productxs and services our customers demand now and in the said Neil Smit, president and chie f executive officer, in a statement.
“The supportg of our bondholders and their new investment in charter also underscores their confidence in our companyand business.” Chartetr said it has also filed motions seekin g permission to continue employee wage and benefits programs and honorr current customer programs without interruption, and to pay trads creditor balances and fees to local franchise authorities. Chartet has hired LLP as legal as financial adviser and AlixPartners LLP asrestructurinyg adviser. Bondholders are representecd by Paul, Weiss, Rifkind, Wharton & Garrison LLP as legap counsel, and its financiall advisers are , Inc. and .
Charterr had announced in that it planned to file for bankruptcy byApril 1. St. Louis-based Chartetr Communications Inc. (Nasdaq: CHTR) is the nation's third-largest cablwe television provider, and also provides digitaol video programmingand high-speef Internet access. It has 5.5 million customers.