RCN Leaves Chapter 11 Sheds more than a billion in debt (old news - 10:18AM Friday Dec 24 2004) tags: business · cable
RCN this week announced they'd officially left bankruptcy behind, effectively shedding more than a billion in debt. The company is naturally optimistic about their new chance, but analysts are split on whether or not the company will continue to struggle as an overbuilder. To aid the emergence, many RCN customers saw a 10% rate increase last month.
Tony Premium join:2002-01-12 Natrona Heights, PA1 edit
We get Chapter 11 letters every other week
And it screws the small business. Basically what they did was not pay their bills....a billion dollars worth of bills spread over thousands of companies.
Gotta love the way that works huh? I work for a company that has been in Ch 11 restructuring from Nov 1999 through November 2004. All the time, we reduced debt by $150 million. However, there was no negatives to it; vendors still sold to us and gave us generous credit lines, no problem paying employees, no problem getting contracts, etc.
It was, as management liked to put it, "business as usual." If I filed for personal backruptcy, it surely would not be "business as usual."
Only a la carte cable TV customers saw a 10% increase in their rates - on par with the Comcast and Time Warner increases. Most of RCN's customers are in bundles, and they saw average increases of 3-4%.
RCN Leaves Chapter 11
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