Report: Charter hires turnaround expert
Charter Communications has hired turnaround expert Greg Doody, another signal that the company may end up restructuring as part of its struggle to manage its debt, according to a report in Reuters.
Doody is known for his work turning around energy company Calpine Corp., and before that HealthSouth Corp.
Reuters previously reported that Charter had hired Kirkland & Ellis to advise on bankruptcy proceedings and investment bank Lazard LLC to help renegotiate debt agreements with bondholders.
The company missed a $73.7 million interest payment due on Jan. 14 but has until Feb. 15 before technically defaulting (story here).
According to Reuters: “The timing of a possible bankruptcy filing is unclear, and there is a possibility that the company could negotiate a so-called "prepackaged" bankruptcy with bondholders. A prepackaged plan is a cheaper and quicker way to go through the bankruptcy process because major creditors vote on the terms of the bankruptcy plan before it is filed with the court.”