This may all be mute in awhile. The following is reposted from the StL OTA thread:
Charter Bankruptcy Filing Near
Reuters is reporting this morning that a bankruptcy filing by Charter Communications is imminent. In addition, CNBC has picked up on this report and indicated that the general credit market environment may make it difficult for Charter to secure debtor-in-possession financing and that that may ultimately result in a Chapter 7 bankruptcy, where the company and all of its assets are completely liquidated.
Reuters this morning reports that cable operator Charter Communications (CHRT) of St. Louis, Missouri, “is preparing a bankruptcy filing,” citing sources “familiar with the situation.” The piece notes that Charter missed an interest payment of $73.7 million last month, and has $21 billion in debt, $1.9 billion of which is due in September of 2010. Reuters says timing of a Chapter 11 filing is “unclear,” and says the company could try for a “prepackaged” filing, where creditors would approve the filing before it is submitted to the court, giving the bankruptcy a faster process.
CNBC’s David Faber picks up the story on his video report this morning, as part of a feature on a “tsunami of bankruptcies” on the horizon, he claims.
“The key for them is getting a debtor in possession financing,” said Faber. “it’s got to be enormous.” Because of the difficulty of getting debtor-in-possession financing, there’s a hightened likelihood of a Chapter 7 filing, aka, liquidation, said Faber.
Charter shares today are down a little over a penny, or 14%, at 7.77 cents.