Bankruptcy judge gives go-ahead for Adelphia sale

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http://news.yahoo.com/s/nm/20060627/media_nm/adelphia_dc_1

NEW YORK (Reuters) - Time Warner Cable said on Tuesday a bankruptcy judge has approved it and Comcast Corp.'s planned $17.6 billion acquisition of Adelphia Communications Corp.'s cable system assets.
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Judge Robert Gerber of the U.S. Bankruptcy Court for the Southern District of New York agreed to allow the sale to go through even though Adelphia is still locked in settlement talks with creditors and bondholders, the unit of Time Warner Inc. said.

The approval means the last remaining hurdle for the Adelphia sale is with the
Federal Communications Commission. Last week, FCC Chairman Kevin Martin said he expected the agency to complete its review of the deal by mid-July.

If approved, the deal would transfer Adelphia's 5 million subscribers to the two cable giants, who will share the bankrupt operator's cable systems assets.

Adelphia has been in talks with various creditors and bondholders for several months about the sale to Time Warner and Comcast. In May, it asked Judge Gerber to allow the sale to proceed without approval of its reorganization plan.

Adelphia said last Thursday it amended the agreements under which its cable systems will be bought by Comcast and Time Warner to speed up the process.

Adelphia also said it filed a modified Chapter 11 plan of reorganization with which it hopes to ease confirmation by addressing the concerns of some of its bankruptcy constituents.

Time Warner and Comcast originally agreed to buy Adelphia's assets in April 2005 in a deal valued at $17.6 billion, made up of $12.7 billion cash and a 16 percent share spin-off of Time Warner Cable. The deal is expected to be completed by July 31.

Comcast shares fell nearly 2 percent to $30.95 at the close of trading on the Nasdaq. Shares in Time Warner dropped 1.1 percent to $16.98 on the
New York Stock Exchange.
 

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