WILMINGTON, Del., Aug. 3 /PRNewswire-FirstCall/ -- The Adelphia
Recovery Trust announced today that it has reached a $167.5 million
settlement of its claims against Adelphia's former auditor Deloitte &
Touche LLP in the lawsuit entitled Adelphia Communications Corp. v.
Deloitte & Touche LLP, No. 000598 (Pa. Court of Common Pleas, Phila. Cty).
Adelphia's claims against Deloitte & Touche were transferred to the Trust
under the terms of the First Modified Fifth Amended Joint Chapter 11 Plan
for Adelphia Communications Corporation and Certain of its Affiliated
Debtors on February 13, 2007.
Under the terms of the settlement, Deloitte & Touche will transfer the
$167.5 million settlement payment into an interest-bearing escrow account
for the benefit of the Trust pending approval of the settlement by United
States Bankruptcy Judge Robert E. Gerber. The escrow funds, including
interest, will be released to the Trust upon final approval of the
settlement.
The settlement was negotiated under the supervision of the Honorable
Daniel Weinstein (Ret.). The Trust stated through a spokesperson: "We are
pleased with the settlement, which is among the largest settlements ever
reached between a public accounting firm and its audit client. This
settlement does not resolve the Trust's claims against Adelphia's former
lenders and others who took part in a massive financial fraud perpetrated
against Adelphia, and the Trust will continue to prosecute those claims
vigorously to conclusion."
The Trust in its discretion may retain some or all of the settlement
proceeds for funding its operations, including expenses incurred to
maintain and administer the Trust and prosecute Trust litigation, all
subject to the terms and conditions of the Plan and the Declaration of
Trust. No decision has been made as to the amount or timing of any
distributions to Trust interest holders.
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 Trust
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 Trust 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: the timing of
receipt of funds by the Trust from the escrow account established in
connection with the Deloitte & Touche settlement; the risk that the
escrowed funds will be returned to Deloitte & Touche and will not be
received by the Trust due to any failure to obtain Bankruptcy Court
approval or otherwise; the legal and other fees and expenses incurred in
connection with the Deloitte & Touche settlement, including unexpected
costs and expenses; the legal fees and expenses associated with the other
causes of action and any related litigation or settlement; the costs of the
administration of the Trust; changes in or interpretations of laws,
regulations and policies; the tax effects of various aspects of the Plan
and the Trust and the tax consequences to the Trust with respect to the
receipt of any settlement amount; the fact that the trustees of the Trust
have discretion with regard to the amount of distributions and the timing
of distributions to holders of Trust interests, subject to the terms and
conditions of the Plan and the Declaration; and the uncertain outcome of
the litigation and other claims that constitute the principal assets of the
Trust, including, among other things, as to whether the Trust is successful
in prosecuting its causes of action and the significant costs to obtain any
settlement or judgment. 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 Adelphia Recovery Trust
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Related links:
http://www.adelphia.com
http://www.prnewswire.com/comp/010150.html/
CONTACT:
Mark Spiecker of Adelphia Communications
Corporation, +1-303-268-6545
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