Bondholders Threaten Adelphia Deal

BONDHOLDERS THREATEN ADELPHIA DEAL
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
A group of Adelphia Communications Corp. bondholders made moves to throw a wrench into the cable company’s efforts to emerge from Chapter 11 bankruptcy and execute a $16.9 billion sale to Time Warner Inc. and Comcast Corp., sending a letter to Adelphia’s board of directors criticizing its latest reorganization plan. Adelphia’s ACC holding-company bondholders said they’re dissatisfied with a plan released earlier this month that Adelphia had hoped would speed up the bankruptcy process. Holders of Adelphia’ Arahova operating-company notes would receive $1.04 for every $1 of debt they are owed, and ACC holding-company debtors would receive 14 cents-43 cents for every dollar owed. “We will vote against the so-called settlement plan filed with the bankruptcy court last week,” the letter stated. “Thus, the settlement plan will not be approved by our class and cannot take effect. This outcome should have been obvious to you when you approved the filing of the settlement plan.” Adelphia is under the gun to settle the four-year-old bankruptcy case due to a provision in its deal with Time Warner and Comcast that sets a deadline of July 31 to seal the transaction. While it is unlikely that Time Warner and Comcast would walk away from the deal if they believed progress was being made, the deadline still looms.
http://www.multichannel.com/article/CA6326720.html?display=Breaking+News