RCN, a triple play cable company, after spending four months in bankruptcy has filed a reorganization plan and plans to come out of Chapter 11 by end of 2004, reports Wall Street Journal. The Princeton, NJ company plans to reduce its debt to $480 million from $1.66 billion. Whichever way it turns out, RCN has turned out to be one bad investment for Paul Allen. Microsoft co-founder bought a 25% stake in the company for about $1.65 billion in 1999. last year, he sold 40% of his interest in the company for $2 million. In essence, his $1.65 billion investment at that time was worth $5 million. Even if RCN makes an amazing and heroic turnaround, Allen will still be licking his finanical wounds for a long long time.
Subscriber content
?
Subscriber content comes from Gigaom Research, bridging the gap between breaking news and long-tail research. Visit any of our reports to learn more and subscribe.
Advertisement
Advertisement
Advertisement
["wijax_52797cdc3b73a4af1d9f172470325e07","wijax_ae5d2023d773e5c4464fd6321893470e"]
{"source":"https:\/\/gigaom.com\/2004\/08\/24\/rcns-back-from-the-brink-plan\/wijax\/49e8740702c6da9341d50357217fb629","varname":"wijax_137ca06c6966ed0908e7230aaa96f32a","title_element":"header","title_class":"widget-title","title_before":"%3Cheader%20class%3D%22widget-title%22%3E","title_after":"%3C%2Fheader%3E"}
{"source":"https:\/\/gigaom.com\/2004\/08\/24\/rcns-back-from-the-brink-plan\/wijax\/49e8740702c6da9341d50357217fb629","varname":"wijax_137ca06c6966ed0908e7230aaa96f32a","title_element":"header","title_class":"widget-title","title_before":"%3Cheader%20class%3D%22widget-title%22%3E","title_after":"%3C%2Fheader%3E"}
Comments have been disabled for this post