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SEC Filings

S-4/A
AVALON CABLE OF MICHIGAN INC/ filed this Form S-4/A on 07/22/1999
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                AVALON CABLE OF MICHIGAN, INC. AND SUBSIDIARIES
 
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                      (In thousands except per share data)
6. Subsequent Event
 
   In May 1999, the Company signed an agreement with Charter Communications,
Inc. under which Charter Communications agreed to purchase Avalon Cable LLC's
cable television systems and assume some of their debt. The acquisition by
Charter Communication is subject to regulatory approvals. The Company expects
to consummate this transaction in the fourth quarter of 1999.
 
   This agreement, if closed, would constitute a change in control under the
indentures pursuant to which the Senior Subordinated Notes and the Senior
Discount Notes (collectively, the "Notes") were issued. The Indentures provide
that upon the occurrence of a change of control (a "Change of Control") each
holder of the Notes has the right to require the Company to purchase all or any
part (equal to $1,000 or an integral multiple thereof) of such holder's Notes
at an offer price in cash equal to 101% of the aggregate principal amount
thereon (or 101% of the accreted value for the Senior Discount Notes as of the
date of purchase if prior to the full accretion date) plus accrued and unpaid
interest and Liquidated Damages (as defined in the Indentures) thereof, if any,
to the date of purchase.
 
   This agreement, if closed, would represent a Change of Control which, on the
closing date, constitutes an event of default under the Credit Facility giving
the lender the right to terminate the credit commitment and declare all amounts
outstanding immediately due and payable. Charter Communications has agreed to
repay all amounts due under the Credit Facility or cause all events of default
under the Credit Facility arising from the Change of Control to be waived.
 
                                     F-134