Adelphia Pushes Merger Closure

ADELPHIA PUSHES MERGER CLOSURE
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
Frustrated with the failure of its major bondholders to reach an agreement, Adelphia Communications Corp. tried to take matters into its own hands Friday, asking a U.S. Bankruptcy Court judge to allow its sale to Comcast and Time Warner to go through without a final bankruptcy agreement. “Despite our best efforts, the creditors’ disputes remain unresolved,” said William Schleyer, chairman and CEO of Adelphia, in a statement. “Removing the requirement for a confirmed Plan of Reorganization for Adelphia greatly increases the odds of Adelphia's sale closing in a timely manner. We believe these modifications accommodate the desires of creditors to lock in maximum value for the estate while enabling them to continue settlement discussions and litigation without the pressure of a looming deadline.” Time Warner and Comcast have apparently signed off on the modified deal. According to a statement, “Time Warner Cable and Comcast are working closely with Adelphia to find the swiftest path to accomplish the sale.” Time Warner and Comcast agreed to jointly purchase Adelphia in April 2005, but the $17 billion deal is predicated on the bankruptcy being completed. Both Time Warner and Comcast have set a July 31 drop-dead date when the two can walk away from the deal without penalty.
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