Adelphia Deal Moves One Step Closer

ADELPHIA DEAL MOVES ONE STEP CLOSER
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
Adelphia Communications cleared the first major bankruptcy court hurdle on its way to completing its sale to Time Warner and Comcast Tuesday, after U.S. Bankruptcy Court Judge Robert Gerber approved a motion to go through with the sale of the bulk of Adelphia’s assets without the approval of bondholders. Adelphia had first proposed the motion in May, after months of negotiations with two classes of bondholders -- Arahova and ACC Holding, noteholders -- reached a standstill. In his order issued Tuesday in U.S. Bankruptcy Court for the Southern District of New York, Judge Gerber approved the motion, stating that it was in the best interests of the estate. Next up for Adelphia is a hearing in bankruptcy court Wednesday morning to approve a reorganization plan for its Century-TCI and Parnassos joint ventures, which are being sold to Comcast. Comcast owns 25% of Century-TCI (which includes about 640,000 subscribers in the Los Angeles area) and 33% of Parnassos (which includes 408,000 customers in western New York and Ohio). Comcast is expected to swap those properties with Time Warner after the deal is closed.
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