With Adelphia Communications Corp. missing a bond interest payment yesterday, the idea that the MSO will file for bankruptcy is gaining momentum.
Yesterday, the company missed a $51.3 million interest payment on its 10-1/4 percent senior notes due Nov. 15, 2009.
Earlier this month, Moody's Investors Service said Adelphia seeking protection from its creditors was "potentially imminent." A USB Warburg analyst has predicted the filing could come as early as this week.
Although analysts have been predicting that a filing is likely in the not too distant future, it is unclear at this point which units would file. Last week, Century Communications became the first Adelphia subsidiary to file for Chapter 11. Adelphia is not commenting on the likelihood of it seeking bankruptcy.