Adelphia Officials Begin Sale Process

Sep 21, 2004  •  Post A Comment

Bankrupt cable operator Adelphia Communications on Tuesday officially launched the closely watched sale of its assets, mapping out a strategy in which potential suitors can bid on either the entire company or one or more of seven clusters of cable systems.

The sale is expected to generate interest from a number of cable operators as well as private-equity players, with final offers expected by the end of the year. UBS Investment Bank and Allen & Co. are handling the sale for Adelphia.

The company said it hoped that dividing its 5.4 million subscribers into seven regional clusters would make it easier for potential buyers to examine the assets and bid on any or all of the clusters. The clusters are based on geography and the ability of the systems within a cluster to operate as standalone entities.

The clusters include Northern New England/Eastern New York; Cleveland/Greater Ohio Valley; Florida/Southeast; California/Western; Virginia/Maryland/Colorado Springs, Colo./Kentucky; Pennsylvania; and Western New York/Connecticut.

“By dividing the company into seven distinct strategic clusters, we believe we can maximize value for Adelphia’s wide range of creditors and other stakeholders,” said Adelphia Chairman and CEO William Schleyer.

Among the potential buyers of are cable giants Comcast and Time Warner, as well as three separate investment teams comprising private-equity firms and longtime cable executives. Some Wall Street analysts have estimated Adelphia’s assets at up to $20 billion.