Charter Says Goodbye to Bankruptcy, Cuts Debt By $8B

Charter Communications Inc. (CHTRQ.PK) said on Monday it has exited Chapter 11 bankruptcy. The cable operator has slashed its debts by 40 percent, or $8 billion, after working with bondholders to restructure its finances.

Charter, which is controlled by Microsoft Corp. co-founder Paul Allen, should generate cash flow soon because it is cutting its annual interest expense by more than $830 million. It’s also getting $1.6 billion in new capital from an equity rights offering. Finally, the company will apply for a new common-stock listing on the Nasdaq stock market in the next few weeks.

Charter, the nation’s fourth-largest cable provider, filed for bankruptcy in March. Before it did that, though, it started working out debt restructuring plans with some bondholders.