Adelphia files reorg plan, lands big funding

Tue, 02/24/2004 - 7:00pm
Jeff Baumgartner

Embattled MSO Adelphia Communications moved ahead on its plan to emerge from bankruptcy Wednesday, filing a proposed reorganization plan with a New York court.

Adelphia based its plan on an estimated $17 billion company valuation, excluding minority interests. Upon leaving Chapter 11, the MSO estimates that it will have roughly $8 billion in debt and have access to an additional $750 million revolving credit facility. A reorganized Adelphia might also issue preferred securities and publicly traded common stock, the company said.

Adelphia also announced it had received commitments for an $8.8 million fully-committed exit financing package that the company will use to finance its reorganization plan. JPMorgan Chase & Co., Credit Suisse First Boston, Citigroup Inc. and Deutsche Bank AG are leading the financial package, which includes $5.5 billion of senior secured credit facilities and a $3.3 billion bridge facility.

Adelphia outlined multiple classes of creditors and equity holders and how they would be paid. Under the proposal, debtor-in-possession lenders, for example, would receive full payment in cash, and full payment in common stock of "reorganized Adelphia" would go to holders of unsecured claims against the MSO's subsidiaries.

"We look forward to working with our stakeholders and the court to make this plan a reality and move Adelphia out of Chapter 11 and into a new era of growth and independence," said Adelphia Chairman and CEO William Schleyer, in a release.


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