Thursday, February 12, 2009

Charter Cable Files Chapter 11

Goodbye old debt, so long shareholders, welcome to the new and hopefully improved Charter Cable. "Charter Communications said Thursday that it has reached a deal in principle with certain debtholders in a restructuring that will reduce its debt by $8 billion and result in the St. Louis-based MSO filing a Chapter 11 bankruptcy petition." And while their is less debt, there is still debt. Financial results indicate improved revenues, but will it be enough to sustain them. Telco and satellite competition, lower advertising, could put Charter again in a bad situation. Is this new life short term or just a precursor to a pending merger with another cable operator. I believe the latter is most likely.

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