Adelphia offers creditors $9.5b
Revised cash plan made as firm seeks to exit bankruptcy
GREENWOOD VILLAGE, Colo. -- Adelphia Communications Corp. is offering creditors more than $9.5 billion in cash in a revised reorganization plan, as it seeks to emerge from bankruptcy and complete the sale of its assets to Time Warner Inc. and Comcast Corp. later this year.
The filing, which was made Saturday in US Bankruptcy Court in New York, also offers creditors shares of Time Warner.
Philadelphia-based Comcast and Time Warner -- the nation's two biggest cable operators -- agreed in April to acquire Adelphia's cable assets and some liabilities for $12.7 billion in cash and 16 percent of the common stock of Time Warner's cable subsidiary, Time Warner Cable Inc.
In a statement accompanying the documents filed in court, Adelphia chairman and chief executive Bill Schleyer said the company expected a hearing by the end of summer.
''Throughout this process, maximizing value for our bankruptcy constituents has remained our most important goal.
''We will keep the process moving ahead," Schleyer said.
Adelphia, the country's fifth-largest cable television company, has more than 5 million customers in 31 states and Puerto Rico.
It sought bankruptcy protection in 2002 after disclosing $2.3 billion in off-balance-sheet debt. Founder John W. Rigas and others were accused of looting the company and cheating investors out of billions of dollars.
The initial plan was filed in February, before Adelphia agreed to the Comcast-Time Warner bid, which is valued at more than $17.5 billion total.
John Rigas, 80, was sentenced this month to 15 years in prison while his son Timothy, 49, was sentenced to 20 years in prison on convictions for bank fraud, securities fraud, and conspiracy.
Rigas family members and family-related companies would not be included in any of the payments under the plan.
Also in April, the company agreed to pay $715 million in a settlement with the federal government to compensate investors hurt by the fraud.
