Adelphia Proposes Revised Bankruptcy Plan

Apr 12, 2006  •  Post A Comment

Adelphia Communications said Wednesday that it is revising its bankruptcy plan to settle a dispute among feuding credit holders that could stall the cable operator from completing its sale to Comcast and Time Warner Cable.

Under the proposed revision, which requires approval from a bankruptcy court judge, Adelphia is seeking to allow creditors to vote on the company’s proposed bankruptcy plan or agree to a plan to put the dispute on hold temporarily to allow the rest of the case to proceed.

Adelphia must emerge from bankruptcy for Comcast and Time Warner to complete the $17.6 billion purchase of the cable operator.

Adelphia CEO William Schleyer said that to “maximize the value of the Adelphia estate, it is essential that we complete the sale of the company’s assets by July 31.” If it misses that deadline, Adelphia is on the hook for a $440 million breakup fee.