Adelphia Revises Reorganization Plan

Feb 4, 2005  •  Post A Comment

Cable operator Adelphia Communications has submitted a revised bankruptcy reorganization plan that formally allows creditors to be paid from the proceeds of any sale of the cable company’s assets.

The new plan, submitted Friday, will make it easier for Adelphia, with 5.3 million subscribers, to pursue its dual-track process of emerging from bankruptcy. In addition to finding a buyer, the company is simultaneously moving ahead with a plan to emerge from bankruptcy as a standalone company. The company has said in the past that it is pursuing both strategies to ensure that credit holders get the maximum amount possible out of the company.

Adelphia received around 10 bids for either all or part of the company in January. It is expected to take several weeks to review the offers, which include joint bids from a group led by cable giants Comcast and Time Warner and a group led by private-equity firms Kohlberg Kravis Roberts & Co. and Providence Equity Partners.

The revised reorganization plan comes as Adelphia also seeks to eliminate around $2 trillion in bankruptcy claims that the company asserts are duplicates of other claims. A hearing on that matter is scheduled for March 8.