Ozark’s lone cable provider to file prearranged bankruptcy

Ozark’s only cable company announced Thursday its plans to file a prearranged Chapter 11 bankruptcy by April 1.

No changes are expected to affect Charter customers in Ozark, according to company spokesman Taylor Ingram.

According to a press release, the company has reached agreements in principle with holders of $8 billion in debt who are expected to give up their debt repayment. Those investors are expected in turn to receive common shares or warrants for rights to get common shares, according to the press release.

The Associated Press reported a prearranged bankruptcy is when a company enters into reorganization with a plan to emerge that has the approval of major stakeholders. The rest of the creditors will be dealt with through bankruptcy court.

The purpose of Charter’s financial restructuring is to strengthen its balance sheet in order to fully support the company’s operations and service its debt, according to the press release.

Charter, which says it is the third largest cable operator in the nation, has been Ozark’s cable company since 1996.

The Ozark City Council recently approved a franchise agreement with Troy Cable, though the company has yet to have set up in the city.