U.S. Trustee objects to Charter bankruptcy plan
Wed, 06/17/2009 - 8:50am
Deborah Yao, AP Business Writer

(AP) – The U.S. Trustee is objecting to the bankruptcy reorganization plan of Charter Communications Inc., the nation's fourth-largest cable operator, saying that it exempts certain key people from lawsuits even if they engage in illegal activities such as securities law violations.

Diana Adams, whose office oversees Charter's Chapter 11 filing, said in a Friday court filing that the provisions covering the company's employees, directors, advisers and other affiliated personnel serve their self-interest.

St. Louis-based Charter, which is controlled by Microsoft Corp. co-founder Paul Allen, declined to comment.

Charter filed for bankruptcy protection in March, buckling under a $21.7 billion debt load that has accumulated after a string of acquisitions. The tight credit market made refinancing its obligations and access to capital difficult.

The U.S. Trustee had similar objections in April about Charter's disclosure statement, but the court approved it and cleared the way for the company to solicit votes for the confirmation of its reorganization plan. If the plan is approved, Charter can emerge from bankruptcy.

A hearing on the reorganization plan has been set for July 20.

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