Classic Cable parent files for Chapter 11

Classic Communications, the company which owns the television cable agreement with the City of Brady, has filed for Chapter 11 bankruptcy in an attempt to restructure its organization. The company, headquartered in Tyler, stated in a press release that there would be no interruptions or changes in service for its customers. Classic Communications President Dale Bennett said the company’s debt structure and lack of liquidity were factors in the bankruptcy decision. “The company plans to emerge quickly from bankruptcy with a strong regional presence in its core markets,” Bennett said. “We believe this broad restructuring is the best and most reliable way to position Classic for future stability, growth and success. We plan to conduct business as usual with no change in service or pricing.” The City of Brady recently signed a 10-year contract with Classic to provide cable service. According to Brady City Manager Merle Taylor, based upon his knowledge of the bankruptcy case, it appears that there will be no adverse affects form the restructuring. “As long as Classic Cable continues to perform its obligations of the contract and meet the franchise agreement, I do not anticipate any change in the local service,” said Taylor. Classic Cable has mailed out letters to customers reassuring them of their commitment as well as to combat switching to competing providers amidst rumors the company was going out of business. The company has approximately 346,000 subscribers in non-metropolitan areas in Texas, Kansas, Oklahoma, Nebraska, Missouri, Arkansas, Louisiana, Colorado, Ohio and New Mexico.

Leave a Comment