Private-equity firm Apollo could take ownership of most of
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,
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
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
, 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.