Lenders Draw Back on Charter Restructuring Scheme

Lenders Draw Back on Charter Restructuring Scheme

Despite Charter’s effort to take its bankruptcy at the brighter side, setbacks never seem to stop emerging every now and then. Last month, the cable company tried to announce its bankruptcy resurgence plans on a positive note. However, lender JP Morgan Chase was not happy with Charter’s move.


Right after Charter announced its restructuring plan, JP Morgan filed a lawsuit against the cable company. Wells Fargo followed suit, expressing its strong displeasure over the firm’s reorganization plan. Subsequent to Charter’s bankruptcy declaration, majority of its stakeholders pre-approved the restructuring, aiming to “reinstate” the its bank debt at pre-bankruptcy interest rates, following exit from bank protection.  Should the firm fail to reinstate it’s debt, it will be paying an annual interest of $500 million.



Charter appeared quite optimistic about its future, saying customers will never be impacted by its financial troubles. This may not be the case now as the company’s problems keep on piling up, adding damage to its already struggling business.