By Ajay Kamalakaran and Emily Chasan
BANGALORE/NEW YORK (Reuters) - The U.S. Trustee, a Justice Department agency that oversees bankruptcies, objected to documents filed by bankrupt U.S. cable TV operator Charter Communications
In a filing with the U.S. Bankruptcy Court for the Southern District of New York on Thursday, the U.S. Trustee said the Charter's disclosure statement is "deficient" and "fails to contain adequate information."
The U.S. Trustee, calling for a change of language in the plan, said Charter did not explain the grounds for releasing its directors, financial advisers, former officers, attorneys, employees and other parties from liability.
Charter, which is controlled by Microsoft
"Neither the disclosure statement nor the plan explain why the non-debtor release is warranted or justified," the U.S. Trustee said in the filing.
Charter postponed a hearing on its reorganization plan to May 5 from April 29.
WELLS FARGO OBJECTION
Wells Fargo & Co
In court documents filed on Wednesday, Wells Fargo, objected to the pre-packaged bankruptcy reorganization plan, saying that it was too risky and could potentially fall apart.
When it filed for bankruptcy, the company had obtained pre-approval from many of its key stakeholders to pursue a reorganization plan that "reinstates" the company's senior bank debt at pre-bankruptcy interest rates, after the company exits from court protection.
If the company is unable to reinstate its debt, Wells Fargo said Charter's interest payments will increase by more than $500 million annually, as it will have to reprice its debt at significantly higher interest rates.
Almost immediately after filing for bankruptcy, Charter was sued by lender JPMorgan
The case is In re: Charter Communications, U.S. Bankruptcy Court, Southern District of New York, No. 09-11435.
