Apollo Could Own Most of Charter Communications

Private-equity firm Apollo could take ownership of most of Charter Communications as part of the cable company's bankruptcy reorganization, reports say.
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Private-equity firm Apollo could take ownership of most of

Charter Communications

(CHTR) - Get Report

as part of the cable company's reorganization in bankruptcy court, according to published reports.

Apollo, which has purchased Charter's debt, plans to own the majority of Charter's equity following the bankruptcy restructuring, which includes a preplanned reorganization of its debt and an equity rights offering,

Reuters

reports, citing sources. In bankruptcy court the debt will be swapped for equity in the new company, the sources said.

Charter plans to file a prepackaged Chapter 11 bankruptcy plan by April 1.

Paul Allen, a co-founder of

Microsoft

(MSFT) - Get Report

who has controlled Charter, will retain voting control of the company, according to securities filings. Apollo will have minority voting rights and a non-control position, the

Wall Street Journal

reports, citing people familiar with the talks.

A spokesman for Apollo declined to comment for the

Journal

, while a Charter spokesperson didn't immediately return requests for comment.

The nation's fourth-largest cable operator said earlier this week its loss for the fourth quarter widened from a year earlier to $1.5 billion. It has been struggling with a heavy debt load after growing rapidly through acquisitions.