Verizon, Adelphia cable TV sale killed
Copyright 2002 Knight Ridder/Tribune Business News
Copyright 2002 Press-Telegram
Verizon Communications on Monday withdrew a proposal to sell its cable television franchise to Adelphia Communications Corp., citing ongoing financial woes within Adelphia.
The decision came just three days before Cerritos, Calif. city officials were to ask the City Council to reject the proposed cable franchise transfer, also because of Adelphia's "financial instability," said city spokeswoman Annie Luger.
Verizon began notifying Cerritos officials about the decision to cancel its deal late last week, said Verizon spokeswoman Julia Wilson.
Verizon Americast has operated the Cerritos cable franchise since 1995. Verizon announced the sale to Adelphia Communications, at one time the nation's sixth-largest cable television company, in early March.
But in recent weeks Adelphia has been rocked by bank debt defaults, missed interest payments on bonds and reports that it is on the verge of filing for Chapter 11 bankruptcy protection.
It is under investigation by two federal courts and the Securities and Exchange Commission.
Verizon will continue to operate the cable franchise while it looks for another buyer.