Charter's Organizational Structure Labyrinth

Having received numerous emails asking for some more info about the highly convoluted relationships between Charter's various entities and inquiries as to why any rational company would have 10+ tiers of debt (ahem, Charter - rational?), Zero Hedge presents a rather simplified version of Charter's Org Chart. Hopefully this will make analyst lives a little less painful at several large funds (you know who you are).

PS. As it was pointed out to us, ZH forgot to cite that this chart is the hard work of one or more still employed BofA analysts who likely had to spend their post midnight dinner allowance as they first created then filled the boxes just the right shade of red. Zero Hedge salutes you anonymous real men of Charter flow charts. We hope fundamental analysis survives long after the market has turned to dust.


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Charter Has Not Learned from Nortel Lessons

Bloomberg reports that Charter Communications, which as we noted, did not pay its Jan. 15 interest payment and has hired Rick Cieri and his mega-bankruptcy law firm Kirkland and Ellis... What boggles is why the company has hired Lazard as financial advisor after their deplorable failure to procure a DIP loan for Nortel, leading to its Chapter 11 filing. The 3rd largest cable company in the U.S. , which serves some 5.5 million soon to be TV-less customers in 27 states, will imminently provide a variety of "diligence" trips for Lazard to its St. Louis headquarters, although according to this the A-list bankers will undoubtedly prefer to be staffed on the Nortel deal. And, as we expected, Charter will file with a boatload of cash, a little over $900 million to mitigate for the lack of interim bankruptcy funding.

Charter, whose chairman and biggest shareholder (don't mean much when the stock trades at 12 cents) is Microsoft co-founder Paul Allen, has never been profitable since going public 10 years ago.

Other advisors who will join the vulture-fest, are financial advisors Houlihan Lokey and Miller Buckfire, advising bondholders and Paul Allen, respectively.

With over $16 billion in debt and a lot of pissed off bondholders, this will likely be one messy bankruptcy.

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