Charter Communications stockholder seeks equity committee
NEW YORK — A Charter Communications Inc. shareholder wants a committee to represent it and other shareholders in the Town and Country-based telecommunication company’s bankruptcy proceedings.
Q Investments LP, a holding company with a fund that owns 4.7 percent of the Class A common stock, contends that Charter is solvent and that Charter’s Chapter 11 reorganization plan is a "sweetheart deal" that benefits bondholders and insiders while wiping out existing shares.
The plan is based on the reinstatement of $11.8 billion in debt, prompting some secured lenders to oppose it because their debt can’t be reinstated. The plan would cancel $8 billion in debt and reduce annual interest expense by $830 million. It is to be funded with $2 billion in new equity, a $1 personal loans.2 billion refinancing and $276 million from the sale of new notes.
A hearing on the motion for an equity committee will be held Wednesday. The court-appointed trustee overseeing the Charter bankruptcy has declined to appoint a shareholder committee, given opposition from the company and the creditors’ committee, which argued that another committee shouldn’t be formed so close to plan confirmation.
Creditors are voting on the reorganization plan negotiated before the Chapter 11 filing in March. The plan confirmation hearing is set for July 20.
Filed under: management by Wolf