Creditor: Adelphia needs $17.5B bid
Copyright 2004 Cable News Network
All Rights Reserved
November 16, 2004 Tuesday 8:33 AM EST
From Lexis Nexis
A leading creditor of bankrupt cable operator Adelphia Communications Corp. is arguing that the company needs to see bids of at least $17.5 billion or it'll move to block a sale, according to a published report.
The Wall Street Journal reports that distressed-bond investor Bill Huff, principal and president of W.R. Huff Asset Management Co., has accumulated enough of Adelphia's debt to become head of its unsecured-creditors committee.
And he told the Journal that unless the bids for the company match his target, as well as protecting creditors from the fine federal regulators are expected to demand from Adelphia, he'll work to block a sale from being approved by the bankruptcy court.
The newspaper reports that the fine could be as much as $1 billion.
That $17.5 billion valuation is higher than many analysts expect for the company, according to the newspaper. Richard Bilotti, a Morgan Stanley cable analyst, recently put the company's value at $15.6 billion to $17.2 billion.
Bids are expected from a joint venture of the nation's two largest cable operators, Comcast Corp. and Time Warner Inc. CNN/Money is a Time Warner unit.
The Journal reports buyout firm Kohlberg Kravis Roberts & Co. is also considering a bid.
The newspaper reports that Huff has a successful track record buying distressed debt of cable operators and getting control of the company through a reorganization process. But it said that Huff has battled with some other members of the creditors committee, which could hurt his efforts to convince the court to block a sale for a lower price than he's seeking.