NEW YORK, June 6 /PRNewswire-FirstCall/ -- Adelphia Communications
Corporation (OTC: ADELQ) today is filing a modified Chapter 11 bankruptcy
Plan of Reorganization with the U.S. Bankruptcy Court for the Southern
District of New York relating to the two joint ventures it holds with
Comcast Corporation. This Second Modified Fourth Amended Joint Plan of
Reorganization is a key step in the process announced by Adelphia Friday,
May 26, to facilitate completion of the sale of substantially all of
Adelphia's assets to Time Warner NY Cable and Comcast as expeditiously as
possible.
Under this process, Adelphia's majority interests in the joint
ventures, Parnassos and Century-TCI, will be sold to Comcast in connection
with a confirmed Chapter 11 Plan of Reorganization that provides for
payment in full to the creditors of the joint ventures, while substantially
all of Adelphia's remaining Cable assets will be sold to Comcast and Time
Warner NY Cable under a court-approved asset sale under Section 363 of the
Bankruptcy Code. The sale of Adelphia's interest in both joint ventures and
the sale of the remaining Adelphia assets are expected to occur
contemporaneously.
Distributions to creditors of Adelphia entities outside the Century-TCI
and Parnassos joint ventures will not occur until after the confirmation of
separate plans of reorganization relating to those entities, which Adelphia
intends to seek following completion of the sales. Until confirmation of
such separate plan of reorganization, the non-joint venture Adelphia
entities will remain in bankruptcy. More information on the process to
consummate the Comcast--Time Warner NY Cable transactions under the joint
venture plan of reorganization--Section 363 approved sale can be found in
the press release issued by Adelphia on May 26.
The process announced by Adelphia on Friday, May 26, is subject to,
among other things, agreement with Time Warner NY Cable and Comcast on
amendments to the applicable purchase agreements. To date the parties have
not agreed to such amendments and there can be no assurance that such
agreement will be reached.
A copy of the modified plan is available in the investor relations
section of the Adelphia corporate web site http://www.adelphia.com.
About Adelphia
Adelphia Communications Corporation is the fifth largest cable
television company in the country. It serves customers in 31 states and
offers analog and digital video services, high-speed Internet access and
other advanced services over Adelphia's broadband networks.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements. All statements
regarding the Company's and its subsidiaries' and affiliates' expected
future financial position, results of operations, cash flows, sale of the
Company, settlements with the Securities and Exchange Commission (the
"SEC") and the United States Attorney's Office for the Southern District of
New York (the "U.S. Attorney"), restructuring and financing plans, expected
emergence from bankruptcy, business strategy, budgets, projected costs,
capital expenditures, network upgrades, products and services, competitive
positions, growth opportunities, plans and objectives of management for
future operations, as well as statements that include words such as
"anticipate," "if," "believe," "plan," "estimate," "expect," "intend,"
"may," "could," "should," "will" and other similar expressions are
forward-looking statements. Such forward-looking statements are inherently
uncertain, and readers must recognize that actual results may differ
materially from the Company's expectations. The Company does not undertake
a duty to update such forward-looking statements. Factors that may cause
actual results to differ materially from those in the forward-looking
statements include whether the proposed sale of the Company's assets to
Time Warner NY Cable LLC ("Time Warner") and Comcast Corporation
("Comcast") is approved and consummated, whether the contemplated
modifications to such sale transactions, as well as the contemplated Second
Modified Fourth Amended Joint Plan of Reorganization, filed with the
Bankruptcy Court on June 6, 2006, for the Comcast joint ventures, will be
approved and timely consummated in time to close the sale of such assets to
Time Warner and Comcast, the potential costs and impacts of the
transactions contemplated by the proposed modifications, whether the
Debtors' Modified Fourth Amended Joint Plan of Reorganization, filed with
the Bankruptcy Court on April 28, 2006, is confirmed and consummated in
time to close the sale of such assets to Time Warner and Comcast in the
event the contemplated modifications to such sale transactions are not
approved and timely consummated, whether the transactions contemplated by
the settlements with the SEC and the U.S. Attorney and any other agreements
needed to effect those transactions are consummated, the Company's pending
bankruptcy proceeding, results of litigation against the Company, results
and impacts of the proposed sale of the Company's assets, the effects of
government regulation including the actions of local cable franchising
authorities, the availability of financing, actions of the Company's
competitors, pricing and availability of programming, equipment, supplies
and other inputs, the Company's ability to upgrade its broadband network,
technological developments, changes in general economic conditions, and
those discussed under Items 1A, "Risk Factors" in the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2005 and
Quarterly Report on Form 10-Q for the period ended March 31, 2006 and in
the Company's supplement to the Fourth Amended Disclosure Statement, filed
with the Bankruptcy Court on April 28, 2006, which is available in the
investor relations section of the Company's website at http://www.adelphia.com.
Information contained on the Company's Internet website is not incorporated
by reference into this report. Many of these factors are outside of the
Company's control.
SOURCE Adelphia Communications Corporation
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Related links:
http://www.adelphia.com
http://www.prnewswire.com/comp/010150.html/
CONTACT:
Media, Paul Jacobson, +1-303-268-6426, or
Investors, Mark Spiecker, +1-303-268-6545, both of Adelphia
Communications Corporation
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