• Multichannel News, Wednesday, February 18, 2009 9:45 AM

Charter Communications chairman Paul Allen's voting grip on the St. Louis-based MSO will be loosened considerably once the troubled cable operator files for bankruptcy protection, according to SEC documents.

Allen, who has reportedly invested more than $7 billion of his own money in Charter since 1998, currently owns 52% of the cable company's equity and 91% of its voting shares. The company had stressed that he would retain the largest voting interest in the company, but it was expected that his controlling interest in the company would be reduced after it completes a planned debt-for-equity swap.

It turns out Allen's voting interest will fall to 35%, although the chairman will be able to elect the same percentage of the company's board of directors, per the SEC. His equity position will be trickier. Allen's current 52% equity stake will be wiped out after the bankruptcy -- along with everyone else's -- and be replaced with new stock.

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