WILMINGTON, Del., Jan. 31 /PRNewswire/ -- The Adelphia Recovery Trust
("ART") announced today that the February 13, 2007 Effective Date value for
federal income tax purposes of the assets transferred to the ART was $677.7
million (including cash of $25 million). The ART Declaration of Trust and
the Adelphia reorganization plan require the ART to determine the value of
the transferred assets as of the Effective Date for federal income tax
purposes and to communicate that value to the ART's beneficiaries. Under
Section 8.01(a) of the ART Declaration of Trust, unless the Internal
Revenue Service or a court of competent jurisdiction requires a different
treatment, for all federal income tax purposes the ART beneficiaries will
be deemed to have received ART's assets from the Adelphia Bankruptcy Estate
and then to have transferred those assets to the ART.
The valuation for federal income tax purposes was based on a
calculation of value prepared by Weiser LLP, which itself was based on the
trading values of interests in the ART after the Effective Date. The assets
transferred to the ART consist largely of litigation claims that Adelphia
Communications Corporation and its subsidiaries held against third parties,
such as certain banks, investment banks, and advisors. Those litigation
claims are contingent, and the value of those assets is difficult to
quantify with precision. Therefore, the ART emphasizes that no inference
can or should be drawn from this tax valuation as to the Trust's view of
the value of any trust certificates or of any litigation.
A copy of the ART's letter to beneficiaries with information concerning
the federal income tax valuation is available in the "Important
Documents-Adelphia Recovery Trust" section of Adelphia's website at
http://www.adelphiarestructuring.com. Beneficiaries may direct questions to
creditor.inquiries@adelphia.com. However, the ART does not intend to and
will not provide tax advice to beneficiaries. The ART strongly encourages
beneficiaries to consult their own tax advisors.
About Adelphia Recovery Trust
Adelphia Recovery Trust is a Delaware Statutory Trust that was formed
pursuant to the First Modified Fifth Amended Joint Chapter 11 Plan of
Reorganization of Adelphia Communications Corporation and Certain
Affiliated Debtors, which became effective February 13, 2007. The ART holds
certain litigation claims transferred pursuant to the Plan against various
third parties and exists to prosecute the causes of action transferred to
it for the benefit of holders of ART interests.
Forward-Looking Statements
This press release contains forward-looking statements. All statements
(other than statements of historical fact) contained in this release,
including statements that address future plans, goals, expectations,
activities, events or developments, are forward-looking statements. We have
tried, where possible, to use words such as "anticipate," "if," "believe,"
"plan," "estimate," "expect," "intend," "forecast," "initiative,"
"objective," "goal," "project," "outlook," "priorities," "target,"
"evaluate," "pursue," "seek," "potential," "continue," "designed,"
"impact," "may," "would," "could," "should," "will" and other similar
expressions to identify forward-looking statements. Forward-looking
statements are based on current expectations and are subject to substantial
risks, uncertainties and other factors, many of which are beyond our
control. We cannot guarantee that any forward-looking statement will be
realized, as actual results may differ materially from those identified or
implied in any forward-looking statement. Among the factors that may cause
actual results to differ materially are the following: changes in or
interpretations of laws, regulations and policies; and the tax effects of
various aspects of the Plan and the Trust. All forward-looking statements
speak only as of the date they were made. The Trust does not undertake a
duty to publicly update or revise such forward-looking statements or other
information contained herein, whether as a result of new information,
subsequent events, circumstances, changes in expectations or otherwise.
SOURCE The Adelphia Recovery Trust
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Related links:
http://www.adelphiarestructuring.com
http://www.prnewswire.com/comp/010150.html/
CONTACT:
Mary Palmquist, +1-303-268-6545, for The
Adelphia Recovery Trust
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