That makes it more difficult to argue that a bankrupt company is cheap. There is more demand for distressed than there is supply.

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Most of the bondholders probably bought these bonds cheaper than 80 cents on the dollar and they may be inclined to exchange at least some of what they own to help the company along -- and then their remaining bonds would be more valuable.

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The biggest positive is that it pushed their maturities out, which gives them more time to grow into their capital structure. This is also indicative that Paul Allen and ownership don't want Charter to file for bankruptcy.

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The best way to defend their position in the private-equity space is to affiliate with a distressed-debt fund.

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