Biz Briefs: Adelphia Plan Hits Speed Bump

Apr 24, 2006  •  Post A Comment

Adelphia Communications’ proposal to move the cable company out of bankruptcy hit a snag last week after a group of creditors said they would vote against a proposal that would settle a long-running dispute over how certain creditors will get paid. The dispute runs the risk of derailing the planned $17 billion sale of Adelphia to Comcast and Time Warner Cable because Adelphia must emerge from bankruptcy before Adelphia can be sold. What’s more, the sale must be completed by July 31 or Adelphia must pay a $400 million penalty to Comcast and Time Warner. The dispute centers on questions of how equitably about $2 billion in proceeds are being paid to owners of debt owned by an Adelphia subsidiary and to debt owners of Adelphia’s holding company. The plan calls for creditors in the subsidiary to be paid more generously than those linked to the holding company. Adelphia announced earlier this month that it will put the proposal to a vote in May, but there are indications the protesting creditors might own enough debt to sink the plan. If that happens, Adelphia is hoping it can fall back on a plan proposed to the bankruptcy court in which the sale to Comcast and Time Warner Cable moves forward, and the dispute is tabled until a later date.

Belo’s Fourth-Quarter Profit Declines

Newspaper and television station owner Belo said Thursday that its first-quarter profit tumbled 27 percent to $17.3 million, hurt in part by $4.7 million in stock-based compensation expenses booked in the quarter. Revenue rose 6.5 percent to $372 million, driven by growth at both the television and newspaper divisions. Dallas-based Belo’s TV operations, which include 19 network-affiliated television stations, were a major force behind the quarterly results. The company said spot advertising revenue advanced nearly 9 percent in the quarter. Political advertising reached $2.8 million in the first quarter, compared with $500,000 a year ago. Web-based advertising surged 72 percent to $4 million.