Charter: A group precedent for US bankruptcies

Author: | Published: 1 Dec 2009
Paul Allen had to keep his voting rights as part of the deal

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 restructuring at Skadden Arps Slate Meagher & Flom in New York. “It states that you can get a group of bondholders together, give them legal and financial advice and...