Attached files
file | filename |
---|---|
8-K - CCI FORM 8K - CHARTER COMMUNICATIONS, INC. /MO/ | body.htm |
Exhibit
99.1
NEWS
FOR
RELEASE: November 17, 2009
Charter
Communications Plan of Reorganization Confirmed by Court
Enhancing
customer experience remains key focus
St. Louis, Missouri – The
Charter Communications, Inc. (along with its subsidiaries, the “Company” or
“Charter”) pre-arranged Joint Plan of Reorganization (the “Pre-Arranged Plan”)
has been confirmed by the United States Bankruptcy Court for the Southern
District of New York (the “Court”). The Company expects to emerge
from Chapter 11 with a significantly improved capital structure.
“The
Court’s confirmation of our plan is a great accomplishment for Charter and a
positive outcome for our customers, vendors and employees. It
reflects the support of our many stakeholders,” said Neil Smit, President
and Chief Executive Officer. “Throughout this process, Charter has taken
great care to consistently put customers first, while posting solid operating
results. Charter continues to move forward – we are improving our
video, high-speed Internet and telephone services, adding new ways to reach
customer care agents and scheduling more convenient service appointments, all
centered on enhancing the customer experience. Going forward, Charter
will continue to provide simple, customer-oriented entertainment and
communications solutions and upon emergence, will have an improved capital
structure.”
The
Court’s confirmation of the Pre-Arranged Plan paves the way for Charter to
successfully conclude one of the largest and most complex pre-arranged
financial restructurings ever. Upon the Pre-Arranged Plan
becoming effective, Charter expects to generate positive free cash flow through
the reduction of more than $830 million in annual interest
expense. The current debt of Company subsidiaries CCO Holdings, LLC
and Charter Communications Operating, LLC will be reinstated under pre-existing
pricing and maturity dates. In addition, the Pre-Arranged Plan
provides for the reduction of approximately $8 billion of debt, approximately
$1.6 billion in proceeds from an equity rights offering to support the overall
refinancing, and the exchange of approximately $1.7 billion of CCH II notes for
new 13.5% CCH II notes due 2016. Existing shares of the Company’s
common stock will be
cancelled. Paul
Allen will continue as an investor, and will retain the largest voting interest
in the Company. The Company intends to apply for listing of its new common stock
issued in accordance to the Plan on The NASDAQ Stock Market LLC not earlier than
45 days after emergence.
The
Company anticipates that certain objectors may appeal the Court’s confirmation
of the Pre-Arranged Plan, as well as seek to stay the proceedings during the
pendency of the appeal. Unless a Court orders a stay of the Court’s
confirmation while an appeal is pending, the Company expects to move forward
with satisfying the conditions to the Pre-Arranged Plan’s effectiveness and
anticipates the Pre-Arranged Plan becoming effective even if an appeal is still
pending.
Additional
information about Charter’s restructuring is available at the Company’s website
www.charter.com and www.kccllc.net/charter. Charter filed its
Pre-Arranged Plan and Chapter 11 petitions on March 27, 2009.
About
Charter Communications®
Charter
Communications, Inc. (Pink OTC: CHTRQ) is a leading broadband communications
company and the fourth-largest cable operator in the United States. Charter
provides a full range of advanced broadband services, including advanced Charter
Digital Cable® video entertainment programming, Charter High-Speed® Internet
access, and Charter Telephone®. Charter Business™ similarly provides scalable,
tailored, and cost-effective broadband communications solutions to business
organizations, such as business-to-business Internet access, data networking,
video and music entertainment services, and business telephone. Charter's
advertising sales and production services are sold under the Charter Media®
brand. On March 27, 2009, Charter filed a pre-arranged plan and Chapter 11
petitions in the United States Bankruptcy Court for the Southern District of New
York. Charter believes its operations are strong and expects to continue
operating as usual during the financial restructuring. More information about
Charter can be found at www.charter.com.
Cautionary
Statement Regarding Forward-Looking Statements:
This
release includes forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, regarding, among other things, our plans,
strategies and prospects, both business and financial. Although we believe that
our plans, intentions and expectations reflected in or suggested by these
forward-looking statements are reasonable, we cannot assure you that we will
achieve or realize these plans, intentions or expectations. Forward-looking
statements are inherently subject to risks, uncertainties and assumptions,
including, without limitation, the factors described under "Risk Factors" from
time to time in our filings with the Securities and Exchange Commission ("SEC").
Many of the forward-looking statements contained in this release may be
identified by the use of forward-looking words such as "believe," "expect,"
"anticipate," "should," "planned," "will," "may," "intend," "estimated," "aim,"
"on track," "target," "opportunity" and "potential," among others. Important
factors that could cause actual results to differ materially from the
forward-looking statements we make in this release are set forth in other
reports or documents that we file from time to time with the SEC, including our
quarterly reports on Form 10-Q filed in 2009 and our most recent annual report
on Form 10-K and include, but are not limited to:
•
|
the
completion of the Company’s restructuring including the outcome and impact
on our business of the proceedings under Chapter 11 of the Bankruptcy
Code;
|
•
|
the
ability of the Company to satisfy closing conditions under the
agreements-in-principle with certain of our bondholders and amended
pre-arranged joint plan of reorganization (as amended, “the Plan”) and
related documents;
|
•
|
the
availability and access, in general, of funds to meet our debt obligations
and to fund our operations and necessary capital expenditures, either
through cash on hand, cash flows from operating activities, further
borrowings or other sources and, in particular, our ability to fund debt
obligations (by dividend, investment or otherwise) to the applicable
obligor of such debt;
|
•
|
our
ability to comply with all covenants in our indentures and credit
facilities, any violation of which, if not cured in a timely manner, could
trigger a default of our other obligations under cross-default
provisions;
|
•
|
our
ability to repay debt prior to or when it becomes due and/or successfully
access the capital or credit markets to refinance that debt through new
issuances, exchange offers or otherwise, especially given recent
volatility and disruption in the capital and credit
markets;
|
•
|
the
impact of competition from other distributors, including but not limited
to incumbent telephone companies, direct broadcast satellite operators,
wireless broadband providers, and digital subscriber line ("DSL")
providers;
|
•
|
difficulties
in growing and operating our telephone services, while adequately meeting
customer expectations for the reliability of voice
services;
|
•
|
our
ability to adequately meet demand for installations and customer
service;
|
•
|
our
ability to sustain and grow revenues and cash flows from operating
activities by offering video, high-speed Internet, telephone and other
services, and to maintain and grow our customer base, particularly in the
face of increasingly aggressive competition and the weak economic
conditions in the United States;
|
•
|
our
ability to obtain programming at reasonable prices or to adequately raise
prices to offset the effects of higher programming
costs;
|
•
|
general
business conditions, economic uncertainty or downturn, including the
recent volatility and disruption in the capital and credit markets and the
significant downturn in the housing sector and overall economy;
and
|
•
|
the
effects of governmental regulation on our
business.
|
All
forward-looking statements attributable to us or any person acting on our behalf
are expressly qualified in their entirety by this cautionary statement. We are
under no duty or obligation to update any of the forward-looking statements
after the date of this release.
Contacts:
Media:
Anita
Lamont, 314-543-2215
Charter
Communications, Inc.
Andy
Brimmer
Joele
Frank, Wilkinson Brimmer Katcher
212-355-4449
Analysts:
Mary Jo
Moehle, 314-543-2397
Charter
Communications, Inc.