Bankruptcy Knoxville

Maybe the Charter bankruptcy won’t go as well as they had hoped. This was originally discussed in this post with a follow up posted here. The bankruptcy was approved by the Court last week, but it’s now being appealed by a group of lenders and shareholders to have the plan revisited. The group argues that the bankruptcy is too one-sided. Charter says if the plan is it has expected the appeal but does not expect a delay in implementing the approved plan as it would only imperil the organization further. The Portland Biz Journals reports:

Any delay in Charter’s emergence from bankruptcy could cost the company “hundreds of millions of dollars of additional interest and would put at peril the entire plan,” attorneys for Charter wrote in documents filed Monday.

Charter said it has paid more than $37.9 million per month of default and incremental interest and more than $129 million in legal and adviser fees during the bankruptcy process.

“A stay pending appeal without a bond is a free shot without consequences for the objectors — the losers of the confirmation trial — but an enormous transfer of risk to the debtors — the winners of that trial,” Charter lawyers wrote. “By seeking a stay, the objectors hope to derail this carefully balanced and negotiated prearranged plan, confirmed by the Court, in pursuit of their own individual aspirations for a richer deal for themselves.”

It’s a difficult situation for everyone involved, but the plan is likely to not be halted while the appeal is heard.