BUSINESS BRIEFS
Charter Communications will file for bankruptcy
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PHILADELPHIA — Struggling Charter Communications Inc., the nation's fourth largest cable operator, said yesterday it plans to file a prearranged Chapter 11 bankruptcy by April 1.
Charter, which is controlled by Microsoft Corp. co-founder Paul Allen, said it has reached an agreement in principle with holders of $8 billion in debt who will give up repayment of their debt. In return, they will receive common shares, or warrants for rights to get common shares, that translate to nearly owning the entire company after bankruptcy.
Allen will remain as an investor and retain the largest voting interest in Charter. While his 51 percent stake in the company will be wiped out, along with those of other shareholders as the stock is canceled, Allen was given voting control by debt holders. Allen also holds some debt, which will be converted, and preferred stock.
U.S. RETAIL SALES UP 1% IN JANUARY
WASHINGTON — U.S. retail sales jumped 1 percent in January, reversing a six-month declining trend and defying economists' expectations by posting the biggest increase in 14 months.But higher gas prices and sales, and buyers snapping up other items on post-holiday discounts appeared to aid last month's results. Analysts say the relief is unlikely to last.
The Commerce Department reported yesterday that January retail sales rose 1 percent from December after having fallen for six straight months.
AMERICANS' NET WORTH CUT 22.7%
WASHINGTON — The recession has cut many Americans' net worth by about 20 percent as the value of homes, stock portfolios and businesses have plummeted, the Federal Reserve said yesterday.The Fed said the average net worth of American households plunged 22.7 percent since the recession began in December 2007 through October, when the report was prepared. The median net worth, or the midpoint between the wealthiest and poorest, fell 17.8 percent.
The impact has disproportionately fallen on the wealthiest households and those between ages 55 and 64, a Federal Reserve economist said.
COKE PROFITS FALL, BUT SALES INCREASE
NEW YORK — Coca-Cola Co. said yesterday its fourth-quarter profit fell 18 percent as it felt the effect of the stronger dollar and took several write-downs, but the world's largest soft drink maker sold more of its products around the world.The results — including a 4 percent increase in worldwide case volume — beat Wall Street estimates, and Coca-Cola's shares rose 7.6 percent to end at $44.39.
The seller of Sprite, Fanta, VitaminWater, Minute Maid orange juice and Nestea also plans to accelerate spending cuts and said it will save $500 million a year by 2011.
