A court decision in Charter Communications bankruptcy
proceeding has set an important precedent as to what
constitutes a group under section 13(d) of the Securities
Exchange Act. This will make it easier for other companies to
retain debt they can afford under their original terms.
Following a decision in the United States Bankruptcy
Court Southern District of New York, Charter Communications
successfully reinstated $12 billion of its $22 billion debt
complete with the favourable terms it was issued on in 2007. It
has also written off $8 billion of debt and raised $1.6 billion
of new equity through a rights issue.
The ruling will be cited over and over again,
said Jay Goffman, head of corporate...