Paul Allen’s Charter Communications has officially filed for bankruptcy, citing $24.2 billion in debt and $13.1 billion in assets.
The move has been expected for months. Still, it makes you wonder: Is this a good or bad thing for the company? For the industry?
That depends on who you are. As far as the company is concerned, the action gets its a $3 billion injection from investors.
It will reorganize so that it can better deal with its debt, although it may have to sell off certain assets before it emerges from bankruptcy.
That hefty debt makes it an unlikely takeover target, experts say, but that doesn’t mean that Time Warner Cable or Comcast or some other rival might not consider taking a closer look at Charter now that it has filed for bankruptcy protection.