Charter telecoms files for bankruptcy

Charter, a telecoms company, announced that they had to file for bankruptcy today. This action, while dramatic, will give the company the opportunity to restructure and get back on their feet.

Under the new plan, Charter will get rid of $8 billion in debt and will no longer require debtors to finance its operations. This was not just an overnight decision, however. Charter came to this decision after several quarters of losses. This resulted in a loss of $1.5 billion by the end of last year!

Since Charter is a smaller company, they did not fare as well as some of the larger telecoms during this recession. Current employees don't need to worry at this moment, however, as their pay rates will remain the same. Paul Allen, the co-founder of Microsoft will also stay on with his stake in the company.

[via Electronista]