Charter Communications today filed for Chapter 11 bankruptcy to rid its balance sheet of $8 billion in debt, but that apparently will have no affect on the company’s plans to roll out upcoming speed boosts. I feel unusually credulous writing this, but Charter spokeswoman Anita Lamont told me, “What’s happening on the balance sheet won’t affect our operations.” Perhaps that optimism is how a cable company with 5.5 million customers, $6.48 billion in sales and a $2.451 billion net loss for 2008 found itself with $21.67 billion in debt. No matter, Charter has said it plans to roll out DOCSIS 3.0 upgrades in a few markets in 2009, although Lamont declined to say which ones.
Perhaps Anita Lamont might want to think how ridding them selves of the debt will effect their creditors….
Oh maybe put them out of business, or as will also be the case they will start to find it hard to find any suppliers at all who wish to become a creditor in the future.
Ian
Why the surprise? They are being unusually blatant about it but chapter 11 has always been a get out of jail free card. Was there a telco that did not make use of it last time the sharemarket tanked? Most of them are still around. We’ll more of this during the current downturn.