US Trustee Balks At Charter Ch. 11 Plan

Law360, New York (June 15, 2009, 12:00 AM EDT) -- The U.S. trustee overseeing the Chapter 11 case of Charter Communications Inc. has criticized the company's joint reorganization plan, saying that improper nondebtor releases, which block claims against third parties, make the plan unconfirmable.

The trustee, Diana Adams, filed an objection in the U.S. Bankruptcy Court for the Southern District of New York on Friday, saying that the plan improperly extinguishes claims against parties that are not debtors, including claims brought by the debtors' equity holders.

Under the nondebtor release provision of the plan, Charter's members,...
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