Charter Communications, Inc., one of the largest cable companies in the U.S. today commenced the next phase of its previously announced financial restructuring, which is expected to reduce the Company's debt by approximately $8 billion.
"The financial restructuring is good news for Charter and our customers and, if approved, will result in Charter being better positioned to deliver the products and services our customers demand now and in the future," said Neil Smit, President and Chief Executive Officer.
According to the NY Times, Charter reportedly had about $21.7 billion in debt at the end of 2008. After the bankruptcy, the company will have $13 billion mainly in bank debt, which expires from 2013 to 2016, the Times reported.
So here's a major company, a virtual monopoly in many of its markets I bet, going into a structured bankruptcy in order to emerge in a better financial position on the other side.
Students in today's current events/economics classes are probably left scratching their heads... "What? No Bailout?"
Students who will be in current events/economics classes 15-25 years from now will probably just say thanks.
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