Charter 2011 Annual Report Download - page 40

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28
Bankruptcy Proceedings
On March 27, 2009, Charter filed a Chapter 11 petition in the United States Bankruptcy Court for the Southern District of New
York. On November 17, 2009, the Bankruptcy Court issued its Order and Opinion confirming the Plan over the objections of
various objectors. Charter consummated the Plan on November 30, 2009 and reinstated the Charter Operating Credit Agreement
and certain other debt of its subsidiaries.
Two appeals are pending relating to confirmation of the Plan, the appeals by (i) 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); and (ii) R2
Investments, LDC (“R2 Investments”) (a former equity interest holder in Charter). The appeals by Law Debenture Trust and R2
Investments were denied by the District Court for the Southern District of New York in March 2011. A Notice of Appeal of that
denial has been filed by both Law Debenture Trust and R2 Investments. We cannot predict the ultimate outcome of the appeals
nor can we estimate a reasonable range of loss.
Other Proceedings
We have had communications with the United States Environmental Protection Agency (“the EPA”) in connection with a self
reporting audit which may result in a proceeding. Pursuant to the audit, we discovered certain compliance issues concerning our
reports to the EPA for backup batteries used at our facilities. We do not view these matters as material.
We also are party to other lawsuits and claims that arise in the ordinary course of conducting our business, including lawsuits
claiming violation of anti-trust laws and violation of wage and hour laws. The ultimate outcome of these other legal matters
pending against us or our subsidiaries cannot be predicted, and although such lawsuits and claims are not expected individually
to have a material adverse effect on our consolidated financial condition, results of operations, or liquidity, such lawsuits could
have in the aggregate a material adverse effect on our consolidated financial condition, results of operations, or liquidity. Whether
or not we ultimately prevail in any particular lawsuit or claim, litigation can be time consuming and costly and injure our reputation.
Item 4. Mine Safety Disclosures.
Not applicable.