More objections to Charter’s reorg
More complications were introduced to Charter Communications’ Chapter 11 bankruptcy proceedings when one of its major creditor banks said it wants to file an objection to the company’s reorganization plan, and Verizon filed a separate objection.
Wells Fargo Bank is asking for court permission to file a sealed objection to Charter’s reorganization plan ahead of a hearing next week, according to Reuters (story here).
A hearing to decide about approving Charter's pre-arranged plan, including the reinstatement of $11.8 billion in debt, is set for July 20. The case is being heard in U.S. Bankruptcy Court, Southern District of New York.
Wells Fargo says its objection involves confidential information, which is why it is asking for permission to file its claim under seal. The bank is acting as an agent for third-lien lenders to CCO Holdings LLC, a unit of Charter.
Verizon Communications, meanwhile, is worried that a plan submitted by Charter could put at risk any future award or settlement money obtained from Charter in pending patent infringement suits, according to Law360 (story here), a Web site that follows bankruptcy proceedings.