GREENWOOD VILLAGE, Colo., July 31 /PRNewswire-FirstCall/ -- Adelphia
Communications Corporation (OTC: ADELQ) today completed the sale of
substantially all of its assets to Time Warner Cable and Comcast
Corporation for aggregate consideration of approximately $12.5 billion in
cash and approximately 16 percent of the equity of Time Warner's cable
subsidiary.
As a result of the sale, Adelphia will no longer operate as a U.S.
cable company. Its approximately 4.8 million customers will be distributed
between Time Warner Cable and Comcast.
Teams from the buyers and Adelphia have worked together for months to
ensure an orderly transition for customers, communities and the almost
13,000 Adelphia employees who will transfer to Time Warner Cable and
Comcast.
"The successful closing of this sale signals a major achievement for
Adelphia's Chapter 11 bankruptcy case on several fronts," said Chairman and
CEO William Schleyer. "We've maximized the recovery for our creditors,
dramatically improved the quality and performance of the systems going to
Time Warner Cable and Comcast and saved almost 13,000 jobs. That stands in
stark contrast to the situation almost 40 months ago when there was serious
talk of liquidating Adelphia."
Concurrent with the closing of the sale, Adelphia also consummated a
plan of reorganization for the former joint ventures with Comcast
(Century-TCI and Parnassos), resulting in the repayment in full of
approximately $1.7 billion of indebtedness. Adelphia Communications
Corporation will hold the remaining sale proceeds for distribution to its
creditors through a Plan of Reorganization as it seeks to resolve its
Chapter 11 bankruptcy case in the U.S. Bankruptcy Court for the Southern
District of New York (case number 02-41729).
On July 24, 2006 Adelphia announced an agreement on a framework for a
Plan of Reorganization intended to result in a fourth quarter 2006
emergence from Chapter 11. The agreement enjoys widespread support among
Adelphia's major unsecured creditors, including the Official Committee of
Unsecured Creditors, though several constituencies do not support it.
Adelphia's obligations under the agreement and the reorganization plan
envisioned by it are subject to approval by the Bankruptcy Court.
"While our focus now turns to achieving a confirmed Plan of
Reorganization as soon as possible," added Schleyer, "we should take this
opportunity to thank Adelphia's employees who had the faith to endure
through four years of uncertainty and whose hard work significantly
increased values to our creditors and delivered much-improved cable systems
to our buyers."
UBS Investment Bank and Allen & Company LLC served as Adelphia's
financial advisors for the sale transaction. Sullivan & Cromwell LLP served
as Adelphia's legal advisor for the sale. Willkie Farr & Gallagher LLP
continues to serve as Adelphia's legal counsel for the Chapter 11
bankruptcy process.
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 report 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") and expected emergence from bankruptcy, 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 of substantially all of the consolidated assets of the
Company to Time Warner NY Cable LLC and Comcast, whether and on what
timetable a joint plan of reorganization under Chapter 11 of the Bankruptcy
Code will be confirmed and 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 sale of the Company's assets 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
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
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CONTACT:
Media, Paul Jacobson, +1-303-268-6426, or
Investor Relations, Mark Spiecker, +1-303-268-6545, both of
Adelphia Communications Corporation
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