Charter sweetens pot for one class of noteholders ahead of Monday's confirmation hearing

By Caroline Salls

Pittsburgh, July 16 - Charter Communications, Inc. filed an amended plan of reorganization Thursday with the U.S. Bankruptcy Court for the Southern District of New York to provide additional consideration to holders of Charter Communications, Inc.'s convertible senior notes, according to a company news release.

"Since filing our initial pre-arranged plan, we have been working constructively with our creditors and other stakeholders and appreciate their ongoing support," president and chief executive officer Neil Smit said in the release.

The company said the amended plan generally maintains all of the key terms of its original pre-packaged plan of reorganization.

The additional consideration to the CCI noteholders will come in the form of 15% payment-in-kind preferred stock in the reorganized company and potential amounts from a litigation escrow depending on the bankruptcy court determining which Charter entities are entitled to the proceeds of the escrow.

Charter said the amended plan also adjusts the terms of the new preferred stock to increase the amount to $138 million from $72 million, change the mandatory redemption date to five years after issuance from seven years, increase the new preferred stock dividend rate to 17% and 19% in years four and five, respectively, and provide for the listing of the new preferred stock on a stock exchange along with the company's new common stock.

The plan confirmation hearing is scheduled for Monday.

Charter Communications is a St. Louis-based provider of video services, high-speed internet services and telephone services to residential and commercial customers on a subscription basis. The company filed for bankruptcy on March 27. Its Chapter 11 case number is 09-11435.

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