Biz Briefs

Mar 1, 2004  •  Post A Comment

Beleaguered cable operator Adelphia Communications on Feb. 25 laid out its plans to emerge from federal bankruptcy protection. Company executives hope to complete the process by year-end and announced that the company received $8.8 billion in bank financing to help fund the effort.
The financing is split between $5.5 billion in senior secured credit facilities and a $3.3 billion bridge loan, the latter of which serves as a short-term loan to tide over the company until more permanent financing is in place. The $8.8 billion total will be used to finance cash payments made by Adelphia as part of its Chapter 11 reorganization plan, which was submitted Wednesday to the U.S. Bankruptcy Court for the Southern District of New York. Investment banks JPMorgan Chase, Credit Suisse First Boston, Citigroup and Deutsche Bank are serving as lead banks.
As part of the reorganization plan, Adelphia estimated its value at about $17 billion, excluding minority interests, and said it will carry about $8 billion in debt and have access to a $750 million revolving credit facility. The company said it will have several classes of creditors and equity holders, who, depending on their status, could be paid with cash, preferred securities or common stock. The final outcome could be only a month away.
Clear Channel Income Up Slightly
Radio and television broadcaster Clear Channel Communications last week said its fourth-quarter net income rose 2 percent to $187 million, or 30 cents a share, compared with a year-earlier profit of $184 million, or 30 cents a share, as revenue increased 4 percent to $2.2 billion. For the year, the San Antonio-based owner of more than 1,200 radio stations and 34 television stations, posted a 58 percent surge in profit to $1.2 billion, or $1.85 a share, compared with net income of $725 million, or $1.18 a share. Revenue climbed 6 percent to $8.9 billion.