Published in: KSDK - NBC
Author: Cordell Whitlock
In 2001, stock for St. Louis-based Charter Communications was at $25 a share. Microsoft co-founder Paul Allen poured billions into the company, but years of debt have taken a toll.
In January, Charter missed payment on close to $74 million in debt. They have until February 15 to repay that amount. The nation's fourth largest cable provider could be looking at filing for federal bankruptcy.
Under Chapter 11, Charter would continue to operate but the court would have the power to restructure the company. The plan could include layoffs and modifying contracts.
Initially, customers would not necessarily see much of a change in service but service upgrades and channel expansion could be put on hold.
Webster University Accounting professor Rich Dippel discusses the situation.
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