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Kennedy <br />Graven <br />C;HAR'1'ERED <br />470 US Bank Plaza <br />200 South Sixth Street <br />Minneapolis MN 55402 <br />Robert J.V. Vose <br />(612) 337-9275 telephone <br />(612) 337-9310 fax <br />rv ose@kennedy-graven. com <br />REPORT CONCERNING CHARTER REORGANIZATION <br />JUNE 18, 2009 <br />This Report is prepared for the cities of Aitkin, Faribault, Little Falls, Rosemount and the <br />Sherburne/Wright Counties Cable Commission, a 10-city consortium. The Report addresses <br />Charter's request to reorganize. Charter's proposed reorganization requires local franchising <br />authority (i.e. city) approval. <br />CC VIII Operating, LLC holds the franchise in Aitkin, Faribault, Little Falls and the <br />Sherburne/Wright cities. In Rosemount, Charter Cable Partners, LLC (formerly Marcus Cable <br />Partners) holds the franchise. These entities are indirect, wholly-owned subsidiaries of Charter <br />Communications, Inc. ("Charter"). <br />On March 27, 2009, Charter and its subsidiaries filed for Chapter 11 bankruptcy in <br />federal court in New York. Charter filed for bankruptcy because the company is insolvent-- its <br />liabilities exceed its assets. The purpose for a Ch. 11 bankruptcy is to improve a company's <br />financial position by facilitating the elimination, reduction or restructuring of a company's <br />liabilities and debt. <br />In this case, Charter will reduce certain bonded indebtedness in exchange for giving those <br />bondholders a stake in the company. Charter's current common stock will be cancelled and <br />replaced with new voting stock Currently, Charter's founder, Paul G. Allen, and his affiliated <br />entities hold approximately 91 % of Charter's voting stock. Mr. Allen's ownership will be <br />reduced to 35% while new stockholders (principally 5 bondholders) will acquire 65% of the <br />