Charter Communications bank debt held its ground last week even as Ralph Kelly, the company's treasurer, resigned. Traders said the company's bank debt traded in the 85 1/2-86 1/2 context, where the paper had been moving the week before. The bank debt held its ground because of the benign circumstances of Kelly's departure, noted one buysider, explaining that the official left to pursue other interests.
Up ahead for Charter, some market players anticipate that the company will miss the end-of-March deadline to file its annual report. In that case, the company would have 30 days to cure the breach, otherwise it would be in default under its credit facility. This would not necessarily be bad for bank debt holders because the ability to draw on the revolver would be frozen, noted one dealer. Still looming over Charter is the seven-month federal investigation into the company's books. Calls to the company were not returned by press time.