February 12, 2009

Who didn't pay their cable bill?

A new interesting twist for local internet and cable TV customers. The New York Times reports that Charter Cable has filed for Chapter 11 bankruptcy. This means that Charter will attempt to reorganize itself and restructure its debt, protected from its creditors. The company's largest stockholder is Paul Allen one of the founders of Microsoft. Mr. Allen says he will continue as an investor.

The company, which has more than 5.5 million subscribers, said it would make an overdue interest payment of $74 million before a final deadline of Feb. 15.

Charter said that as of Feb. 11 it had more than $800 million in cash on its balance sheet. The company said it believed its liquidity combined with its cash from operating activities would be sufficient to meet its projected cash needs.
NOt sure where this will lead except the company has only one major resource-its base of subscribers and their revenue stream. I expect we will be further squeezed.
Ciao.

2 Comments:

At 6:17 PM, Blogger Russ said...

Charter's poor customer service, price increases and really bad signal quality (especially the local channels) moved me to Direct TV years ago.

 
At 6:47 PM, Anonymous Bruce Lorenz said...

charters weak signal up in Corolla is absurd......maybe a new company should take over.......but then again, as Mr Townsend says....meet the new boss, same as the old boss

bl

 

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