WILMINGTON, Del., Aug. 3 /PRNewswire-FirstCall/ -- The Adelphia
Recovery Trust announced today a settlement of all pending litigation and
bankruptcy claims between Leonard Tow, Claire Tow, related entities, David
Z. Rosensweig, and Adelphia. Upon approval of the settlement by United
States Bankruptcy Judge Robert E. Gerber, the Trust shall receive
consideration comprised of (i) a cash payment of approximately $15.6
million and (ii) an interest bearing note in the principal amount of
$4,875,250 to be issued by Adelphia.
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, including repayment of the note issued by
Adelphia; the possibility that the funds 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
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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