View Full Version : Adelphia: Creditors, Bondholders Agree

07-24-2006, 11:18 PM
Adelphia Says Creditors, Bondholders Backing Bankruptcy Plan

GREENWOOD VILLAGE, Colo. (AP) -- Adelphia Communications Corp. said Monday that most of its major bondholders and trade creditors have agreed on the company's plan to emerge from bankruptcy in the fourth quarter.

Bank lenders and other bondholders have not yet signed off on the deal and any reorganization plan needs approval from the U.S. Bankruptcy Court for the Southern District of New York. But the Colorado-based company said the latest developments will help.

"This agreement will help pave the way toward a new, modified plan of reorganization that will be subject to court approval, and we're pleased that after lengthy negotiations a significant majority of our unsecured creditors are satisfied with the outcome," Adelphia Chief Executive and Chairman Bill Schleyer said in a statement.

Adelphia declared bankruptcy in 2002 after disclosing $2.3 billion in off-balance-sheet debt. Founder John Rigas and one of his sons were convicted for their roles in company fraud. A second son received 10 months of home confinement after pleading guilty to a charge of making a false entry in a company record.

Comcast Corp., based in Philadelphia, and Time Warner Cable, a unit of Time Warner Inc. of New York, plan to divide Adelphia's assets and swap systems to strengthen their positions in several markets.

Adelphia officials said disputes among creditors over how to distribute proceeds from the sale to Time Warner Cable and Comcast have delayed resolution of the Chapter 11 reorganization.

The company said the latest agreement reflects a compromise among several unidentified creditor groups under which approximately $1.1 billion in value will be transferred.

Adelphia, with 4.8 million subscribers, was the nation's fifth-largest cable TV provider. Comcast is expected to end up with over 23 million subscribers while Time Warner would have more than 14 million.

Reigster at SatelliteGuys