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Minnesota Public Utilities Commission (PUC) because Charter Fiberlink, LLC and Charter <br />Telephone of Minnesota, LLC n/k/a Charter Fiberlink CC VIII, LLC are Charter subsidiaries <br />with certificates of authority to provide local telecommunications services in Minnesota. These <br />companies are subject to PUC regulation and the proposed reorganization requires PUC approval <br />under Minn Stat. § 237.16, subd. 1(b). The DOC reviewed whether Charter has the financial <br />capacity to continue to operate a telephone network and provide telephone service. <br />The DOC found that Charter does have adequate financial capacity and recommended <br />approval. The DOC's report is being provided with this Report. Among other things, the DOC <br />notes that the reorganization will reduce Charter's debt by $8 billion and result in $3 billion in <br />new investment in the company. The DOC concludes that "[a] reorganized Charter is in the <br />public interest because it is expected to have a reduced debt to-equity or leverage ratio, reduced <br />debt interest payments, and positive free cash flow." Based on these are positive steps for <br />Charter's financial future, the DOC recommends that the PUC approve the reorganization in <br />relation to oversight of telephone services provided by Charter subsidiaries. <br />Based on the DOC recommendation and expected PUC approval (which is consistent <br />with approvals granted by other state utility regulatory commissions), it is my opinion that <br />Charter likely could and would seek to "overturn" any local government denial of the FCC Form <br />394 in bankruptcy court. Further, Charter's proposed reorganization does not sufficiently impact <br />the public interest to justify participating in a bankruptcy court proceeding in New York to <br />defend a denial. If anything, the evidence is that reorganization may positively impact Charter's <br />financial future. Because there is no basis to conclude that the reorganization will negatively <br />impact Charter's financial ability to provide cable service and comply with the local franchise, I <br />recommend that the reorganization be approved <br />4 <br />