Charter 2009 Annual Report Download - page 79

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CCH II, LLC AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009, 2008, AND 2007
(dollars in millions, except where indicated)
F-31
Reorganization items, net consisted of the following items:
Successor Predecessor
One Month Ended
December 31, 2009
Eleven Months Ended
November 30, 2009
Penalty interest, net $ -- $ 351
Loss on debt at allowed claim amount -- 41
Professional fees 3 167
Paul Allen management fee settlement – related party -- 11
Other -- 18
Total Reorganization Items, Net $ 3 $ 588
Reorganization items, net consist of adjustments to record liabilities at the allowed claim amounts and other expenses
directly related to the Company’ s bankruptcy proceedings. Penalty interest primarily represents the 2% per annum
penalty interest paid on the Company’ s debt and credit facilities while in bankruptcy, and the incremental amounts
owed on the credit facilities as a result of the requirement to pay the prime rate plus the 1% per annum applicable
margin instead of the election to pay LIBOR. While in bankruptcy, Charter Operating and CCO Holdings were not
able to elect LIBOR on credit facilities but paid interest at the prime rate plus the 1% per annum applicable margin
plus 2% per annum penalty interest. Post-emergence professional fees relate to claim settlements, plan
implementation and other transition costs related to the Plan.
17. Other Income (Expense), Net
Other income (expense), net consists of the following for years presented:
Successor Predecessor
One Month
Ended
December 31,
Eleven Months
Ended
November 30,
Year Ended
December 31,
2009 2009 2008 2007
CCO Holdings notes redemption $ -- $ -- $ -- $ (19)
Charter Operating credit facilities refinancing -- -- -- (13)
CCH II tender offer -- -- (4) --
Gain (loss) on investment -- 1 (1) (2)
Other, net -- 1 (5) --
$ -- $ 2 $ (10) $ (34)
In July 2008, CCH II completed a tender offer, in which $338 million of CCH II’ s 10.25% senior notes due 2010
were accepted for $364 million of CCH II’ s 10.25% senior notes due 2013, which were issued as part of the same
series of notes as CCH II’ s $250 million aggregate principal amount of 10.25% senior notes due 2013, which were
issued in September 2006. The transactions resulted in a loss on extinguishment of debt of approximately $4 million
for the year ended December 31, 2008.
In April 2007, CCO Holdings redeemed $550 million of its senior floating rate notes due December 15, 2010
resulting in a loss on extinguishment of debt of approximately $19 million for the year ended December 31, 2007.
In March 2007, Charter Operating refinanced its facilities resulting in a loss on extinguishment of debt for the year
ended December 31, 2007 of approximately $13 million.