Charter Communications has been granted permission to proceed with its Chapter 11 reorganization plan.

The United States Bankruptcy Court for the Southern District of New York approved Charter’s Disclosure Statement, which in practical terms means Charter can now take the next step toward emerging from bankruptcy: presenting its reorganization plan to its shareholders.

The court has authorized Charter to begin soliciting votes on its Pre-Arranged Plan. That plan is supported by Charter Chairman Paul Allen and his affiliates, as well as by holders of a majority of Charter’s debt.

There are several banks that hold a significant minority of Charter’s debt, however, and they are continuing to challenge the Pre-Approved Plan. The court’s decision to allow Charter to take its plan to its shareholders has no affect on the challenge, which may yet be either denied or upheld. JP Morgan Chase is the lead lender on the legal challenge.

Charter said it will soon begin the process of soliciting votes for the Pre-Arranged Plan from eligible stakeholders. The Court has set the voting deadline for June 15 for eligible stakeholders. Additionally, the Court scheduled the hearing to consider confirmation of the Pre-Arranged Plan for July 20.

“We are pleased to have reached this important milestone in our financial restructuring, and now with the court’s authorization, we can begin the solicitation of stakeholder votes on our Pre-Arranged Plan,” said Neil Smit, president and CEO of Charter.

More Broadband Direct 05/06/09:
•  Charter a step closer to reorganization
•  Virgin Media to offer more HD VOD content
•  BigBand posts 10% increase in first-quarter revenues
•  Convergys bows on-demand voice authentication platform
•  Hawaii broadband bill fails in state Legislature
•  Alvarion losses widen on flat WiMAX shipments
•  Research: Pay-TV subs will continue to grow this year
•  Broadband Briefs for 05/06/09