Adelphia is another step closer to mere memory with the conclusion of the last major lawsuit concerning its dissolution. An appeals court judge has ruled against a group of bondholders who were fighting for a $250 million increase in what they were scheduled to get under the company's reorganization plan.
Judge Shira A. Scheindlin of the U.S. District Court in New York dismissed the bondholders’ appeal on the grounds that it was moot. Adelphia is closed and its assets assigned; ruling in favor of the bondholders would have required reversing transactions in progress or already completed.
The judge said the appeal would have been helped had the bondholders offered another bond to cover the stay of Adelphia bankruptcy proceedings. The judge severely chastised the bondholders, who include Banc of American Securities and Lehman Bros. Holdings, for their unwillingness to put up a bond of significant value.