Shares of Charter Communications (CHTR) were down dramatically during Monday trading on word that the cableco is pursuing bankruptcy.
Its stock prices had fallen to 8 cents, a more than 13 percent drop, by early afternoon trading.
Now that Charter has missed a hefty $73.7 million interest payment on its $21 billion debt load, sources have revealed to Reuters that the company is eyeing bankruptcy. One of its options includes a “prepackaged” bankruptcy where key creditors vote on the terms of bankruptcy before it goes to court. That’s considered a cheaper, cleaner alternative to typical bankruptcy proceedings.
Charter’s single-largest investor is Paul Allen, co-founder of Microsoft Corp. (MSFT).
