Bankruptcy court sets date for Charter Communications reorganization plan hearing

Date set for Charter reorganization plan hearing

ST LOUIS — A date has been set for the confirmation hearing of Charter Communications Inc.’s reorganization plan as it seeks to emerge from bankruptcy, but lender objections remain.

The St. Louis-based cable TV operator, which is controlled by Microsoft co-founder Paul Allen, said the U.S. Bankruptcy Court for the Southern District in New York has approved its disclosure statement and gave approval to the company to solicit votes for the reorganization plan.

The voting deadline for stakeholders is June 15. The hearing is set for July 20. The plan’s confirmation, which would reduce Charter’s debt by about $8 billion, paves the way for a bankruptcy exit.

Charter filed for Chapter 11 bankruptcy protection in March, seeking relief from its payments on debt that piled up from a string of acquisitions. The company filed a pre-arranged bankruptcy, where terms were reached with certain key creditors before bankruptcy is filed.

But the court also said it would hear objections from JPMorgan Chase & Co., which sued Charter to block the reinstatement of $11.8 billion of debt on the post-bankruptcy company — a key part of the plan. Charter had asked the court to dismiss the litigation.

Shares of Charter closed at 3.4 cents on Tuesday, about flat from the previous day.