GREENWOOD VILLAGE, Colo., Aug. 18 /PRNewswire-FirstCall/ -- Adelphia
Communications Corporation (OTC: ADELQ) today filed drafts of its Fifth
Amended Joint Chapter 11 Plan of Reorganization and the related Supplement
to its Fourth Amended Disclosure Statement with the United States
Bankruptcy Court for the Southern District of New York. Adelphia and the
Official Committee of Unsecured Creditors are co-proponents of the Fifth
Amended Plan (except to the extent set forth in the plan), which embodies
the framework agreed upon by Adelphia, its Official Committee of Unsecured
Creditors, and certain ad hoc committees representing most of Adelphia's
major bondholders and trade creditors, as well as significant individual
bond funds, and reflects the compromise among these important creditor
groups pursuant to which approximately $1.08 billion in value will be
transferred from certain unsecured creditors of various Adelphia
subsidiaries to certain unsecured senior and trade creditors of the
Adelphia Communications parent corporation, subject, in some cases, to
reimbursement from contingent sources of value, including the proceeds of a
litigation trust to be established under the plan to pursue claims against
third-parties that are alleged to have damaged Adelphia.
Adelphia and the Official Committee of Unsecured Creditors are seeking
an order of the Bankruptcy Court approving the Supplement to the Disclosure
Statement as containing "adequate information" to enable Adelphia's Chapter
11 bankruptcy creditors and equity holders to make an informed judgment
about the Fifth Amended Plan. Adelphia's proposal and prosecution of
confirmation of the Fifth Amended Plan is subject in all respects to entry
of such an order, as well as Bankruptcy Court authorization for Adelphia to
propose and seek votes in respect of the Fifth Amended Plan. Absent entry
of such an order and authorization, Adelphia's filing of the Fifth Amended
Plan and related Supplement to the Disclosure Statement shall not be deemed
to be a proposal by the Debtors with respect to the proposed treatment of
any claims against equity interests in Adelphia or its subsidiaries. If
this order is entered and such authorization is granted, Adelphia and the
Official Committee of Unsecured Creditors will begin the process of
soliciting creditors and equity holders to vote on the Fifth Amended Plan.
Copies of the Fifth Amended Plan and related Supplement to the
Disclosure Statement are available in the investor relations and press room
sections of the Adelphia corporate website http://www.adelphia.com. This press
release is not intended to be, nor should it be construed as, a
solicitation for a vote on the Fifth Amended Plan.
About Adelphia
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 (the "Sale Transaction"), 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 Adelphia'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,
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 Adelphia's pending bankruptcy
proceeding, 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
Adelphia's expectations. Adelphia 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, whether and on what timetable a 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, Adelphia's pending bankruptcy
proceeding, results of litigation against Adelphia, results and impacts of
the Sale Transaction and those discussed under Items 1A, "Risk Factors," in
Adelphia's Quarterly Report on Form 10-Q for the period ended June 30, 2006
and in the Supplement to Adelphia's Fourth Amended Disclosure Statement,
filed with the Bankruptcy Court on August [18], 2006, which is available in
the investor relations section of Adelphia's website at http://www.adelphia.com.
Information contained on Adelphia's Internet website is not incorporated by
reference into this press release. Many of these factors are outside of
Adelphia'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
Investor Relations, Mark Spiecker, +1-303-268-6545, both of
Adelphia Communications Corporation
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