Bad Debt Conjures up Bankruptcies

Let the games begin

A growing wave of souring corporate debt claimed another victim on Thursday as Charter Communications Inc., the nation’s fourth-largest cable-TV company, said it would seek bankruptcy-court protection by April 1.

Charter, which was started by Microsoft Corp. co-founder Paul Allen, said its planned Chapter 11 filing was intended to trim about $8 billion from its $21 billion in debt. After extensive negotiations, a committee of debtholders agreed to the plan, under which Mr. Allen will retain control of the company.

Charter’s bankruptcy-court filing would be the latest in a succession of corporate setbacks. Earlier this week, Muzak Holdings LLC, known …