<div id="subtitle">Charter Communications emerges from bankruptcy, Paul Allen retains largest voting stake</div><div><p>Charter Communications Inc., the nation's fourth largest cable operator, said Monday that it has emerged from Chapter 11 bankruptcy.</p><p>Charter, controlled by Microsoft co-founder Paul Allen, said the prearranged bankruptcy filing erased $8 billion of debt and the new company will be left with borrowings of $13 billion. Bondholders who exchanged $8 billion of debt end up owning substantially all of the newly reorganized company.</p><p>Allen's majority stake will be reduced to 2 percent. But he will have 35 percent control of all votes — making his the largest voting interest in Charter — and gets to appoint four directors to the board.</p><p>Charter was driven to bankruptcy in March after suffering under $21.7 billion of debt amid a tight credit environment that made refinancing tough.</p><p>The cable operator piled on debt over the years to finance a spate of acquisitions. It hasn't made a profit since going public in 1999.</p><p>But the new Charter said it expects to post positive free cash flow because lower debt levels have cut annual interest costs by more than $830 million.</p><p>In addition, Charter said it will receive $1.6 billion from an equity rights offering and exchange $1.7 billion of debt into new notes carrying a 13.5 percent interest rate due 2016.</p><p>Current debt of its CCO Holdings LLC and Charter Communications Operating LLC will be reinstated under the same pricing and maturity dates as before the bankruptcy filing.</p><p>The new Charter will apply for listing on the Nasdaq in 45 days or longer. Existing common stock in Charter has been canceled.</p><p>Charter, based in St. Louis, Mo., serves 4.9 million cable TV subscribers in 27 states.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=64494063&bid=informcom" /></div><div id="copyright"><div>

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