The details are slim, but it appears that Charter has reached a much anticipated bankruptcy agreement by reaching a deal with its bondholders. “We are pleased to have reached an agreement with such a significant portion of our bondholders on a long-term solution to improve our capital structure,” said Neil Smit, Charter President and Chief Executive Officer in a company statement. “We are committed to continuing to provide our 5.5 million customers with quality cable, Internet and phone service, and through this agreement, we will be even better positioned to deliver the products and services our customers demand now and in the future. Moreover, the interest and support provided by our stakeholders with their new capital investment underscores their confidence in Charter and our business.”
The agreement allows Charter to refinance $8 billion in a debt-for-equity transaction. The deal allows Charter to make overdue debt payments of $74 million, whose outstanding status was helping fuel bankruptcy rumors. Charter states that “it’s an agreement in principle,’ and there are still details to be worked out. The bankruptcy is scheduled for April 1.