Despite the fact Charter Communications only knows how to stay in debt, it theoretically has come out of bankruptcy. The company has reduced it’s total debt by 40% which converts to $8 billion leaving $13 billion owed to creditors.
The company has carried debt for over a decade, robbing the shareholders and bondholders, yet emerges as a better company that will continue in debt. This is truly a head scratcher.
Every company is offered the same legal opportunities to restructure and to seek legal protection. However, my beef has always been with the CEO, Paul Allen. He is the largest shareholder and he sought bankruptcy in February 2009 to reduce the company’s debt by $8 billion and received exactly what he wanted. Do you see something wrong here?
If Paul Allen has run the company for a decade in debt, successfully reduces the debt, and comes out of bankruptcy, then he earns his place as CEO. Obviously, it is difficult to do much since he is the largest shareholder.
Paul, do your shareholders a favor, quit.
