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Charter files for bankruptcy reorganization

By ASSOCIATED PRESS   Friday, March 27, 2009 - 9:52 a.m.
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ST. LOUIS (AP) — Charter Communications Inc., the fourth-largest U.S. cable operator, said Friday that it filed for prearranged bankruptcy reorganization.

Charter, which is based in St. Louis and is controlled by Microsoft Corp. co-founder Paul Allen, had planned to file a prearranged bankruptcy by April 1.

For years the company has ducked insolvency, but it is now coming up against tight credit and billions of dollars of debt coming due.

Charter had about $21.7 billion in debt at the end of 2008. Holders of $8 billion of the debt agreed to exchange it for almost full ownership in the new company, and some old debt was exchanged for new debt. After the bankruptcy, the company will have $13 billion mainly in bank debt, which expires from 2013 to 2016.

In a prearranged bankruptcy, a company enters into reorganization with a plan to emerge that has the approval of major stakeholders. The rest of the creditors will be dealt with through bankruptcy court.

In a statement, Charter Chief Executive and President Neil Smit said the restructuring "is good news" for the company and its customers.

"We look forward to an expeditious restructuring, and once completed, we believe that Charter will be a stronger company," Smit said.

Charter said that along with the bankruptcy filing it filed motions requesting permission to keep employee wage and benefits programs running and to continue customer programs without interruptions.

The company also named Gregory L. Doody as Chief Restructuring Officer. Doody has worked on restructurings for companies including Calpine Corp. and HealthSouth Corp.

Kirkland & Ellis LLP is serving as Charter's legal counsel, Lazard as its financial adviser and AlixPartners LLP as restructuring advisor.




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(69)
whoanellie
Mar 31, 2009 at 9:25 a.m.
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I've had dish and hated it! Everytime the wind blew my tv went out. Had to call them NUMEROUS times for sevice mostly had to wait 2 weeks to a month to get them out there! Switched to Charter for cable & internet. never had a problem in the 4or 5 years I've had it. Just last month I called them because our bill went up. I told them I appreciated the good service they always give and didn't want to switch if I didn't have to. they lowered the bill under what I had been paying and guarenteed it for 12 months. Works well if you can be nice. I've also been in the kennedy rd. office to pay my bill and they have always been nice. A smile goes a long way!

jja
Mar 29, 2009 at 4:41 p.m.
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gonefishin nevermind i looked it up .

jja
Mar 29, 2009 at 4:13 p.m.
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gonefishin
Mar 28, 2009 at 2:10 p.m.
Suggest removal Charter SUCKS anyway. U-Verse kicks the crap out of anything charter offers.
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gonefishin who is U-Verse and where do you get it ,what company give details if possible.do they offer high speed and tv channels?

gaz20
Mar 28, 2009 at 12:12 p.m.
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hmmm, very interesting, so what happens to the class action lawsuit and the people that are waiting for thier money, for winning that suit, is that to, put on hold?

beeferer
Mar 28, 2009 at 11:43 a.m.
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I Googled Charter Sucks and got: Results 1 - 10 of about 732,000 for charter sucks. (0.23 seconds)

RichE95
Mar 28, 2009 at 11:32 a.m.
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The free market will always win in the end. I agree with the complaints about Charter. They tend to surface when there is a problem. We have considered UVERSE but the price is not competetive with Charter for us - Charter keeps offering promo rates when the last one expires - but you have to ask for it. UVERSE is newer technology but requires a box for every television which we wouldn't like. A friend has had phone problems after converting to UVERSE. The Charter cable straight to the television is all we really need except for the HD larger sceen television. Bottom line - I hope all stay in business and compete for my business. All choices will have pluses and minuses. I will then pick the best overall package and review that decision periodically. That is capitalism at it's best.

beeferer
Mar 28, 2009 at 9:37 a.m.
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I've had Dish Network for quite a few years now. Once when I had to talk to customer service I got someone in India and couldn't communicate with them. I couldn't understand them and they couldn't understand me. I simply asked if I could speak to someone in the United States and they said sure. The next thing I knew I was talking to a good ol' boy in Texas. I was grinning ear-to-ear. So (This explicative was removed by the site staff.) you, Charter!

wisconsingirl52
Mar 28, 2009 at 8:20 a.m.
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I also think Charter's rates are too high, but I rarely have any kind of a service outage (I bundle the cable, Internet and phone). I don't even bother calling the 800 customer service number anymore - it's too frustrating to talk to someone in India or the Phillipines that I can't understand. I go to the Charter office in Janesville and they are extremely patient and helpful and I always get the issue straightened out (have only had to go there three times in 15 years!) The lady on the far left when you walk in seems to be the most knowledgeable and fortunately she has helped me twice now - excellent customer service at the Charter office on Kennedy. Too bad the foreigners on the phone couldn't offer the same customer service. I will stick with Charter as long as my rates don't go much higher. If they do, I will go along with what my husband wants and get a dish.

wiscchick
Mar 28, 2009 at 7:23 a.m.
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I have had DirecTV for abt 2 yrs now, HATED the cost of Charter and the poor customer service. Even with the occasional signal trouble in really bad weather, I still don't have the amount of "out time" I had with Charter. Plus, the DirecTV customer service is fantastic, I've had to call a couple times (bought new TVs, had to unhook the old one and hook up the new) and they actually walked me thru it over the phone. Calls answered promptly by people who speak English. Beats Charter hands down. The cost is comparable with better channel options, tons of HD and great customer service. Charter can't compete and it's obvious why they are going under.

jja
Mar 28, 2009 at 1:24 a.m.
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Really to bad Beloit cable tv is not available never had any trouble with them .

janesvillecomments
Mar 28, 2009 at 1:01 a.m.
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I have had Charter cable TV for a long time and haven't had any serious problems with it. I helped set up some of their employees with dial-up Internet accounts before they had Internet service in Janesville and signed up for their Internet service as soon as they offered it. I like the speed and I've only had a few brief outages or problems over the years.
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Their customer service phone support is aggravating, but then so is AT&T's. I didn't have cause to call Charter about a problem at all last year or this year so far. A lot of large businesses take the mushroom approach to dealing with customers.

jja
Mar 27, 2009 at 11:09 p.m.
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My wife was hinting about what she wanted for our upcoming anniversary.
She said, " I want something shiny that goes from 0 to 150 mph in about 3 seconds"
I bought her a bathroom scale.

...and that's when the fight started

carlitosway
Mar 27, 2009 at 9:11 p.m.
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zoom get over GM its gone. Sarah you have only had charter a few weeks wait till the bills come and they are twice the amount as you were told. the package deals what a joke i was billed for triple play and kept getting separate phone bill and told I had to pay it to keep my service Guess what I told them where to put it and will never go back. The counter girls were great after I showed the both bills I was getting every month and tried to help and understood when I cancelled. What was suppose to be 69.00 a month was actually 121.00 a month plus the 34.00 extra they tried to bilk me out of for the phone i was already paying for in the package deal.

klick
Mar 27, 2009 at 9 p.m.
(This comment was removed by the site staff.)
carlitosway
Mar 27, 2009 at 8:51 p.m.
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Way to go charter right down the toilet I hope.........Monoplizing company and now there is competition I also went with ATT. And it is nice to not have all the hidden costs and price changes every month.....

GTS72
Mar 27, 2009 at 8:47 p.m.
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About a year ago I had three over drafts, checked my checking account balc @ Blackhawk Credit Union online,went to bank I asked who these people were. Come to fine out it was Charter, I live in a area where they are not offered, went to Charter waited for about an hour not very happy people there, they said we don't have you on file duh, can't get your service where I live($173.00 charge my to account) they never offered to pay my over drafts, my account took 3-4 days to get payed back, someone at Charter did type O error, I have had Dish for over fifteen years,and had enough pay to my bills too. Thanks Charter!!!!!

localboysince1968
Mar 27, 2009 at 8:35 p.m.
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Dumped Charter years ago. It was overpriced and unreliable. Went with DirectTV (love it) and TDS DSL. Saving about $40 a month. How can DirectTV show more (Big10 and NFL Networks) and charge less? No complaints after 3 years of this. When I had Charter, I had problems every couple of months. Never had trouble with Customer Service though.

lussonee
Mar 27, 2009 at 7:55 p.m.
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Has anyone been by the charter building on Kennedy Rd. lately.The parking lot is full of trucks and vans sitting idle.These vehicles cost money even when they are not being used.Every sane business owner knows that you do'nt hold onto equipment that offers no financial gain.My neighbor works for charter and drives one of their vans.He leaves at 10:00 a.m. & comes home by 3:00 p.m.The rest of the time,including every weekend,the van sits in his driveway.If charter evaluated those expenditures and eliminated the waste,they could save the company and stop increasing our bills twice a year.I have also seen him hooking up equipment and getting materials from the van on off hours.Nice job,if you can get it.

DavidG
Mar 27, 2009 at 6:53 p.m.
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I'm amazed, simply amazed. The cable outfits are essentially unregulated, but have a monopoly on the cable service in each town. Charter must have spent tons of money trying to get us to buy broadband and gearing up for the new HD services. How can a business get in debt to the tune of BILLIONs with any kind of effective management. The bankruptcy seems like it will end up ripping somebody off and likely will raise rates.

gazettefan
Mar 27, 2009 at 5:43 p.m.
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Hell doesn't exist. Except for calling Charter!!!

ekim8404
Mar 27, 2009 at 5:27 p.m.
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I got rid of Charter years ago. Overpriced, REALLY poor customer service, and rude employees. I pay half of what Charter charged me with AT&T, not to mention those "introductory" rates are lame, just wait to you see the real bill. I hope they do emerge a better company after this, however I will never use them again, no matter what.

klick
Mar 27, 2009 at 4:55 p.m.
(This comment was removed by the site staff.)
klick
Mar 27, 2009 at 4:51 p.m.
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Here is a good web site enter in Charter or any other company .

http://www.ripoffreport.com/default.asp

rooster
Mar 27, 2009 at 4:45 p.m.
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my bill just went up 30 bucks. does this mean that i have to pay it or can i wait them out or what?

nics04
Mar 27, 2009 at 4:18 p.m.
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klick-
Thats funny you ask that. A friend of mine works for charter. He never recieved any mailers from them till he started working there and now he can't get them to stop. He gets two to three promo ads a week.

klick
Mar 27, 2009 at 4:09 p.m.
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hannah
how can i get the CHARTER junk mail to stop??? hanna if you find out let me know.--------------------------------------- 40 million dollars of junk mail and then go bankrupt .

nics04
Mar 27, 2009 at 3:43 p.m.
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hannah-
I did the same with my land line. Dumped the $40 a month bill from AT&T and added it to my cell plan for $15.

anotherdoor
Mar 27, 2009 at 3:38 p.m.
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Re: nic's comment, last night, I Googled Microsoft security issues. The way I understand it, Internet Explorer is Microsoft's biggest problem program. The sites recommended using Google Chrome and another internet source. I downloaded Chrome last night, but haven't figured out how to totally delete IE from my computer. BTW, rumor has it there is a horrific worm that is supposed to activate on April 1. There's info on the worm @ various sites, but I also read that it's possible to infect your computer simply by searching for it by name. I don't know if all of this is true, but I'm so sick of Window's security issues, that I'm about to get a Mac.

nics04
Mar 27, 2009 at 3:30 p.m.
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Also as far as price is concerned; its all expensive, AT&T, Dish, Charter, Com Cast, Time Warner no matter who you go with. Thats just part of entertainment. Video and internet are far from a necessity. The only thing having another cable company in town would accomplish, is give people someone else to complain about.

nics04
Mar 27, 2009 at 3:24 p.m.
Suggest removal

They all have qwerks. Have you ever called DELL's tech support?? Same non-english speaking people answering the phone. Its called outsourcing to save money. All companies do it. As inconvenient as it may be you'll always get the best service by stopping out ot the office.

klick
Mar 27, 2009 at 3:06 p.m.
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And if someone from Charter wants to call me drop me an email with phone number via Janesville Gazette,but you won't .

klick
Mar 27, 2009 at 2:42 p.m.
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june 08 high speed charter - worked 1 day /fixed 3 days later /stoped working replaced somthing on pole /worked good for 4 or 5 days /something on pole blows up / relaced worked great said 1 month free (BS) /screwed up my credit card exp date charged me 22.00 or 23.00 said they would reimburse me. i will never be broke because they still owe me the money.so they give me a deal untill 01/31/10. and at&t sucks to slow .

anotheropinion
Mar 27, 2009 at 2:35 p.m.
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Hope AT&T does not drive Charter out of town...they refuse to service all of Janesville. Instead they just "cherry pick" the higher priced neighborhoods.

Didn't they used to call this "redlining."

While we are at it...what about the monopoly that is the state of Wisconsin. At least nobody is forcing you to buy service from Charter. If I don't send my taxes into Madison, they will come after me.

beeferer
Mar 27, 2009 at 2:29 p.m.
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After having to wait on the phone for up to 1 hour and 45 minutes I told Charter to shove it. They are the biggest crooks in town. They want over $50/month for internet access after the promo runs out. I have a Dish bundle now and the birdies are singing and the bunnies are hopping and life is good.

NeuroMed
Mar 27, 2009 at 1:46 p.m.
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Charter service is ok, but yeah, if you have to call "customer service" for anything, it's pretty ridiculous dealing with them!

SarahB1
Mar 27, 2009 at 1:21 p.m.
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I had AT&T phone service until about three weeks ago. I loved it. Due to beginning a part-time job out of my home, I needed high-speed internet. I went with the Charter bundle and have absolutely no complaints. I would endorse either company.

greenst
Mar 27, 2009 at 12:57 p.m.
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I don't have any complaints with charter. ( Have phone,internet,cable HD,movies & DVR) Needed service at our home one time. They showed early and two people came. The people at the office are also super helpful. I had AT&T for phone at one point they were the worst. I would not have anything to do with them or any product the offer. We have Dish at our cottage. Not that good, would give it up for cable anytime. Sure it could be cheeper but what couldn't.

Lost_city
Mar 27, 2009 at 12:46 p.m.
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I called Charter to inform them that the cable was out, and all they wanted to know if I wanted to put my phone service on the same cable that was out. I guess this is their way to cut down complaints.

AmishBob
Mar 27, 2009 at 12:44 p.m.
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I switched to AT&T UVerse in December. Better service and more features and costs less than Charter regular NON-Promo rates. The only thing Charter has ever been good at is raising the bill.

twistedstorm
Mar 27, 2009 at 12:06 p.m.
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I have had no problems with Charter service has always been great with no problems.

janesvillean
Mar 27, 2009 at noon
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The cost of service has nothing to do with whether the company is insolvent.

Rawhide
Mar 27, 2009 at 11:40 a.m.
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Dish Network is by far cheaper for HD programming then either Charter, DirecTV, or ATT Uverse. Only bummers are that they don't offer local ABC or PBS affiliates in HD, nor do they offer NFL Sunday Ticket.

curtaincall
Mar 27, 2009 at 11:34 a.m.
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charter is very expensive. Direct t.v. is the best.. Att is expensive as well.. Direct has them all beat...

LaVerna
Mar 27, 2009 at 11:10 a.m.
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hope att drives charter right out of town soon.

Zoom
Mar 27, 2009 at 10:35 a.m.
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"We look forward to an expeditious restructuring, and once completed, we believe that Charter will be a stronger company," Smit said.

Note to GM. This is how it's done.

anotheropinion
Mar 27, 2009 at 10:30 a.m.
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No sympathy for Charter...what about the employees? We sure don't need anymore job losses in Rock County.

Glad to see such civic mindedness out there. Let's keep on rooting for failure.

mocashflo924
Mar 27, 2009 at 10:27 a.m.
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My family an I live just outside of charter's reach, I have heard nothing but complaints. We had DirecTV but just switch to AT&T Uverse TV, both are great services. Only plus to AT&T, every box is HDTV, not just one like with DirecTV. If you have more than one HDTV, its great.

spark
Mar 27, 2009 at 10:22 a.m.
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May as well give them a bailout. Just another company that was piss poorly managed. Isn't that what we do these days?

3BD
Mar 27, 2009 at 10:18 a.m.
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Their crappy customer service and shaky service finally caught up to them.

chelleandlou
Mar 27, 2009 at 10:14 a.m.
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This is what happens when there's no competition. I don't have any sympathy for Charter. In fact, I've already scheduled my switch to AT&T. I'm tired of the service interruptions!

ljs64
Mar 27, 2009 at 10:13 a.m.
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DirecTV.......is the only way to go.

fattigman
Mar 27, 2009 at 10:02 a.m.
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You gotta love free market capitalism. Charter buys out all the locally-owned and -regulated cable stations on credit, then raises rates to service the debt & fund even more acquisitions. They sell ads, jack up rates, & lobby Congress to deregulate even more. And who gets stuck with the bill at both ends?

lynda
Mar 27, 2009 at 10:01 a.m.
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Does this mean we can expect an increase in our bills? Sure hope not.

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