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2/26/2004

Adelphia files $8.8 billion reorganization plan with court

The Associated Press

GREENWOOD VILLAGE — Adelphia Communications Corp. filed a proposed reorganization plan in bankruptcy court Wednesday after securing $8.8 billion in financing from four large banks.

The plan, filed in U.S. Bankruptcy Court for the Southern District of New York, requires court approval.

Adelphia, the nation’s fifth-largest cable television company, said it hoped to exit bankruptcy protection by the end of 2004. Earlier this year, executives had said the company planned to emerge in the second quarter.

Chief executive Bill Schleyer called it a “milestone” day for the company that used to be based in Coudersport, Pa. He said the reorganization plan values Adelphia at $17 billion, excluding minority interests.

“We believe the exit financing arranged for and committed to will allow us to do everything we need to do to provide state-of-the-art service,” Schleyer said. “We will have our network largely built out and rebuilt by the time we emerge. It gives us what we need to be a stand alone company, independent and growing very rapidly.”

The company filed for Chapter 11 bankruptcy protection two years ago amid allegations that founder John Rigas, two of his sons and another former executive looted the company and cheated investors out of billions of dollars.

Rigas and sons Michael and Timothy are charged with conspiracy, securities fraud and bank fraud.

They have pleaded innocent. Jury selection in their trial began this week.