Wells Fargo is speaking out against Charter Communications’ reorganization plan. The bank thinks reinstating nearly $12 billion of debt might not be possible.
The objection was made in court documents filed this week. Wells Fargo says Charter’s plan is risky and has the potential to fall apart.
If Charter can’t reinstate its debt at pre-bankruptcy interest rates after getting out from the court’s watchful eye, the bank says the cableco’s interest rates will go up by a whopping $500 million per year.
Wells Fargo isn’t the first to take issue with Charter. Lender JP Morgan filed suit against the company earlier this year for allegedly violating loan agreements. JP Morgan, too, believes that reinstating the debt is unrealistic.