RCN’s back from the brink plan

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.

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