GREENWOOD VILLAGE, Colo., June 22 /PRNewswire/ -- Adelphia
Communications Corporation announced today the completion of the "True Up"
Mechanism under the First Modified Fifth Amended Joint Chapter 11 Plan of
Reorganization of Adelphia Communications Corporation and Certain
Affiliated Debtors, dated as of January 3, 2007, as Confirmed.
On the Effective Date of the Plan, 23,158,360 shares of TWC Class A
Common Stock were withheld from the Settlement Consideration and from
distributions to holders of Claims against the Subsidiary Debtors and
holders of Claims against the parent corporation Adelphia Communications
Corporation and deposited in a True Up Holdback account as provided in the
Plan. Under the True Up Mechanism, the recipient of the Settlement
Consideration and holders of Allowed Claims against the Subsidiary Debtors
received an initial distribution of shares of TWC Class A Common Stock, and
had the potential of receiving additional shares of TWC Class A Common
Stock from the True Up Holdback based on a recalculated Deemed Value. The
Deemed Value is recalculated to be the volume weighted average price per
share during market hours of the TWC Class A Common Stock during a 60-day
test period as specified in the Plan. To the extent the shares in the True
Up Holdback are not distributed to the recipient of the Settlement
Consideration and creditors of the Subsidiary Debtors, the shares will be
distributed to holders of Allowed Claims against the parent corporation
Adelphia Communications Corporation or reserved on account of Disputed
Claims against the parent corporation Adelphia Communications Corporation.
Additional information relating to the True Up Mechanism is contained in
the Second Disclosure Statement Supplement, filed with the Bankruptcy Court
on October 16, 2006, Section 10.12 of the Plan, and Section 2.15 of the
Plan Administrator Agreement, all of which are available in the important
documents section of the Company's website at
http://www.adelphiarestructuring.com.
On June 15, 2007, the Plan Administrator filed a notice and an
explanation of the method of recalculation of the Deemed Value with the
Bankruptcy Court. Such notice stated that the Deemed Value of the TWC Class
A Common Stock at the conclusion of the Test Period was recalculated
pursuant to the Plan Administrator Agreement to be $37.8038. A copy of the
notice is available in the important documents section of the Company's
website at http://www.adelphiarestructuring.com. No objections to the
recalculation were received by 4:00 p.m. on June 20, 2007, the objection
deadline set forth in the notice. Accordingly, the new Deemed Value of the
TWC Class A Common Stock for purposes of the Plan is $37.8038, and the
Company will commence distribution of all shares in the True Up Holdback in
the manner set forth in the Plan to holders of record of Note Claims as of
February 13, 2007 and to holders of record of all other claims as of
January 10, 2007.
A chart summarizing the distribution of shares of TWC Class A Common
Stock to be made to certain classes of Claims from the True Up Holdback is
available in the important documents sections of the Company's website at
http://www.adelphiarestructuring.com.
Creditor inquiries regarding distributions under the Plan should be
directed to creditor.inquiries@adelphia.com. 303-268-6545, Media and
Investor Relations Department
About Adelphia
The Effective Date of the Adelphia Plan of Reorganization occurred on
February 13, 2007. Adelphia Communications Corporation continues under the
management of Quest Turnaround Advisors, LLC, its Plan Administrator, to
liquidate its assets and administer its plan of reorganization. Prior to
the sale of substantially all of the consolidated assets of Adelphia to
Time Warner NY Cable LLC and Comcast Corporation on July 31, 2006, Adelphia
Communications Corporation was the fifth largest cable television company
in the country. It served customers in 31 states and offered analog and
digital video services, high-speed Internet access and other advanced
services over its 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
sources and uses of cash, income tax positions, indemnification obligations
and any post-closing purchase price adjustments related to the Sale
Transaction with TW NY and Comcast, 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") and future course
of the administration of the Plan, 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 the potential costs and impacts of the
transactions and obligations associated with the Sale Transaction with TW
NY and Comcast, whether all of the transactions contemplated by the
settlements with the SEC and the U.S. Attorney are consummated, the
Company's administration of the Plan, the tax effects of various aspects of
the Plan, results of litigation against the Company, results and impacts of
the sale of the Company's assets and those discussed under Item 1A, "Risk
Factors," in the Company's Quarterly Report on Form 10-Q for the period
ended September 30, 2006 and in the Company's Second Disclosure Statement
Supplement, filed with the Bankruptcy Court on October 16, 2006, which is
currently available in the important documents section of the Company's
website at http://www.adelphiarestructuring.com. Information contained on
the Company's Internet website is not incorporated by reference into this
press release. 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.adelphiarestructuring.com
http://www.prnewswire.com/comp/010150.html/
CONTACT:
Media and Investor Relations Department of
Adelphia Communications Corporation, +1-303-268-6545,
creditor.inquiries@adelphia.com
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