GREENWOOD VILLAGE, Colo., Sept. 18 /PRNewswire-FirstCall/ -- With a
Disclosure Statement supplement hearing scheduled to continue on Tuesday,
September 19 in New York, Adelphia Communications Corporation (OTC: ADELQ)
today filed modifications to its draft 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.
The modifications reflect settlements with holders of the Ft. Myers and
Olympus notes and two of the three administrative agents to Adelphia's
co-borrowing facilities, as well as certain other changes that were
discussed at last week's September 12th hearing on the Disclosure Statement
supplement.
Adelphia and the Official Committee of Unsecured Creditors remain
co-proponents of the modified plan, which embodies the framework agreed
upon by Adelphia, its Official Committee of unsecured Creditors, as well as
significant individual bond funds. In addition, the two administrative
agents with which settlements have been reached will be co-proponents of
the modified plan with respect to the treatment of bank claims under the
credit agreements for which they are agents.
These modifications are incremental to the compromise among other
important creditor groups under which up to approximately $1.08 billion in
value will be transferred from certain creditors of various Adelphia
subsidiaries to certain unsecured senior and trade creditors of the
Adelphia Communications parent corporation.
The Court commenced the hearing on the Disclosure Statement on
September 12, 2006. 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 modified
Fifth Amended Plan still 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 modified Fifth Amended Plan. Absent entry
of such an order and authorization, Adelphia's filing of the modified 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 or equity interests in Adelphia or its
subsidiaries. If this order is entered and such authorization is granted,
Adelphia, the Official Committee of Unsecured Creditors and the relevant
bank administrative agents will begin the process of soliciting creditors
and equity holders to vote on the modified Fifth Amended Plan.
Copies of the modified Fifth Amended Plan and related Supplement to the
Disclosure Statement are available in the investor relations section 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 Modified 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 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
transactions with Time Warner NY Cable LLC ("TW NY") and Comcast
Corporation ("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 Company'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 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 transactions with
TW NY and Comcast, 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, 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 Item 1A, "Risk Factors,"
in the Company's Quarterly Report on Form 10-Q for the period ended June
30, 2006 and in the Company's Second Disclosure Statement Supplement, filed
with the Bankruptcy Court on August 18, 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
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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