Charter 2010 Annual Report Download - page 43

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District Court for the Southern District of New York. Charter
consummated the Plan on November 30, 2009 and reinstated the
Charter Operating Credit Agreement and certain other debt of its
subsidiaries.
Six appeals were filed relating to confirmation of the Plan. e
parties initially pursuing appeals were: (i) JPMorgan; (ii) Wilmington
Trust Company (“Wilmington Trust”) (as indenture trustee for the
holders of the 8% Senior Second Lien Notes due 2012 and 8.375%
senior second lien notes due 2014 issued by and among Charter
Operating and Charter Communications Operating Capital Corp.
and the 10.875% senior second lien notes due 2014 issued by and
among Charter Operating and Charter Communications Operating
Capital Corp.); (iii) Wells Fargo Bank, N.A. (“Wells Fargo”) (in its
capacities as successor Administrative Agent and successor Collateral
Agent for the third lien prepetition secured lenders to CCO Holdings
under the CCO Holdings credit facility); (iv) Law Debenture Trust
Company of New York (“Law Debenture Trust”) (as the Trustee
with respect to the $479 million in aggregate principal amount of
6.50% convertible senior notes due 2027 issued by Charter which
are no longer outstanding following consummation of the Plan);
(v) R2 Investments, LDC (“R2 Investments”) (an equity interest
holder in Charter); and (vi) certain plaintiffs representing a putative
class in a securities action against three former Charter officers or
directors filed in the United States District Court for the Eastern
District of Arkansas (Iron Workers Local No. 25 Pension Fund,
Indiana Laborers Pension Fund, and Iron Workers District Council
of Western New York and Vicinity Pension Fund, in the action styled
Iron Workers Local No. 25 Pension Fund v. Allen, et al., Case No. 4:09-
cv-00405-JLH (E.D. Ark.).
Charter Operating amended its senior secured credit facilities
effective March 31, 2010. In connection with the closing of these
amendments, each of Bank of America, N.A. and JPMorgan, for
itself and on behalf of the lenders under the Charter Operating
senior secured credit facilities, agreed to dismiss the pending appeal
of our Confirmation Order pending before the District Court for
the Southern District of New York and to waive any objections to
our Confirmation Order issued by the United States Bankruptcy
Court for the Southern District of New York. e lenders filed their
Stipulation of that dismissal and waiver of objections and it was
signed by the judge on April 1, 2010 and the case dismissed. On
December 3, 2009, Wilmington Trust withdrew its notice of appeal.
On April 14, 2010, Wells Fargo filed their Stipulation of Dismissal of
their appeal on behalf of the lenders under the CCO Holdings credit
facility. is Stipulation was signed by the judge on April 19, 2010
and the case dismissed. e remaining appeals by Law Debenture
Trust, R2 Investments and the securities plaintiffs have been briefed
but have not been argued to, or ruled upon by the District Court for
the Southern District of New York. We cannot predict the ultimate
outcome of the appeals.
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In March 2009, Gerald Paul Bodet, Jr. filed a putative class action
against Charter and Charter Holdco (Gerald Paul Bodet, Jr. v. Charter
Communications, Inc. and Charter Communications Holding Company,
LLC) in the U.S. District Court for the Eastern District of Louisiana.
In April 2010, plaintiff filed a ird Amended Complaint which also
named Charter Communications, LLC as a defendant. In the ird
Amended Complaint, plaintiff alleges that the defendants violated
the Sherman Act, state antitrust law and state unjust enrichment law
by forcing subscribers to rent a set top box in order to subscribe to
cable video services which are not available to subscribers by simply
plugging a cable into a cable-ready television. In June 2009, Derrick
Lebryk and Nichols Gladson filed, but did not serve, a putative class
action against Charter, Charter Communications Holding Company,
LLC, CCHC, LLC and Charter Communications Holding, LLC
(Derrick Lebryk and Nicholas Gladson v. Charter Communications,
Inc., Charter Communications Holding Company, LLC, CCHC, LLC
and Charter Communications Holding, LLC) in the U.S. District
Court for the Southern District of Illinois. e plaintiffs allege that
the defendants violated the Sherman Act based on similar allegations
as those alleged in Bodet v. Charter, et al. We understand similar
claims have been made against other MSOs. e Charter defendants
deny any liability and plan to vigorously contest these cases.
We are also aware of three suits filed by holders of securities
issued by us or our subsidiaries. Key Colony Fund, LP. v. Charter
Communications, Inc. and Paul W. Allen (sic), was filed in February
2009 in the Circuit Court of Pulaski County, Arkansas and asserts
violations of the Arkansas Deceptive Trade Practices Act and fraud
claims. Key Colony alleges that it purchased certain senior notes
based on representations of Charter and agents and representatives of
Paul Allen as part of a scheme to defraud certain Charter noteholders.
Clifford James Smith v. Charter Communications, Inc. and Paul Allen,
was filed in May 2009 in the United States District Court for the
Central District of California. Mr. Smith alleges that he purchased
Charter common stock based on statements by Charter and Mr.