Charter 2009 Annual Report Download - page 4

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PART I
Item 1. Business.
Introduction
CCH II, LLC (“CCH II”) is among the largest providers of cable services in the United States, offering a variety of
entertainment, information and communications solutions to residential and commercial customers in 27 states.
CCH II operates in a heavily regulated industry pursuant to various franchises from local and state governments and
licenses granted by state and federal governments including the Federal Communications Commission (the “FCC”).
Our infrastructure consists of a hybrid of fiber and coaxial cable plant passing approximately 11.9 million homes,
through which we offer our residential and commercial customers traditional video cable programming, high-speed
Internet access, advanced broadband cable services (such as high definition television, OnDemand™ (“OnDemand”)
video programming and digital video recorder (“DVR”) service) and telephone service.
As of December 31, 2009, we served approximately 5.3 million customers. We served approximately 4.8 million
video customers, of which approximately 67% were digital video customers. We also served approximately 3.1
million high-speed Internet customers and we provided telephone service to approximately 1.6 million customers.
We sell our cable video programming, high-speed Internet and telephone services primarily on a subscription basis,
often in a bundle of two or more services, providing savings and convenience to our customers. Approximately
57% of our customers subscribe to a bundle of services.
Through Charter Business®, we provide scalable, tailored broadband communications solutions to business
organizations, such as business-to-business Internet access, data networking, fiber connectivity to cellular towers,
video and music entertainment services and business telephone. As of December 31, 2009, we served
approximately 224,300 business customers, including small- and medium-sized commercial customers.
CCH II Capital Corp. is a wholly-owned subsidiary of CCH II and was formed and exists solely as a co-issuer of the
debt issued with CCH II. We are wholly owned by our parent company, CCH I, LLC (“CCH I”) and indirectly
owned by Charter Communications, Inc. (“Charter”). All significant intercompany accounts and transactions among
consolidated entities have been eliminated.
We have a history of net losses. Our net losses were principally attributable to insufficient revenue to cover the
combination of operating expenses and interest expenses we incurred because of our debt, impairment of franchises
and depreciation expenses resulting from the capital investments we have made and continue to make in our cable
properties. As discussed below, we emerged from bankruptcy protection on November 30, 2009 and reduced our
debt by approximately $708 million and our parent companies’ debt by approximately $7.5 billion, reducing our
parent companies’ consolidated interest expense by approximately $830 million annually.
Our principal executive offices are located at Charter Plaza, 12405 Powerscourt Drive, St. Louis, Missouri 63131.
Our telephone number is [phone], and Charter has a website accessible at www.charter.com. Since
January 1, 2002, our annual reports, quarterly reports and current reports on Form 8-K, and all amendments thereto,
have been made available on Charter’ s website free of charge as soon as reasonably practicable after they have been
issued. The information posted on Charter’ s website is not incorporated into this annual report.
Bankruptcy Proceedings and Recent Events
On March 27, 2009, we, our parent companies and certain affiliates (collectively, the “Debtors”) filed voluntary
petitions in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”), to
reorganize under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”). The Chapter 11 cases
were jointly administered under the caption In re Charter Communications, Inc., et al., Case No. 09-11435. On
May 7, 2009, we and our parent companies filed a Joint Plan of Reorganization (the "Plan") and a related disclosure
statement (the “Disclosure Statement”) with the Bankruptcy Court. The Plan was confirmed by order of the
Bankruptcy Court on November 17, 2009 (“Confirmation Order”), and became effective on November 30, 2009 (the
“Effective Date”), the date on which we and our parent companies emerged from protection under Chapter 11 of the
Bankruptcy Code.
As provided in the Plan and the Confirmation Order, (i) the notes and bank debt of Charter Communications
Operating, LLC (“Charter Operating”) and CCO Holdings, LLC (“CCO Holdings”) remained outstanding; (ii)
holders of approximately $1.5 billion of notes issued by CCH II received new CCH II notes (the “Notes Exchange”);