20 Mar Charter in talks to give equity stakes to debt holders
Apollo Management and several other investment firms are in talks to convert their debt holdings in Charter Communications, the troubled cable company, into equity stakes, people briefed on the negotiations said Thursday.
These firms, which include Oaktree Capital Management and Crestview Partners, would do so as part of Charter’s reorganization plan, this person said. Charter previously announced that it would file for bankruptcy by April 1 as part of a restructuring plan struck with its creditors.
Spokesmen for Charter and for Apollo declined to comment.
Under any restructuring plan by Charter, its principal investor, the billionaire Paul G. Allen, will retain control of the company. When the company files for bankruptcy, it will be among the largest to do so this year.
Many bankruptcy experts have said that the bankruptcy boom will lend itself to attractive merger activity as investors swoop in to acquire companies or equity stakes through their debt. For private equity firms, making acquisitions through a company’s debt might prove even cheaper than buying its equity outright.
Read full article>>