Copyright 2006 The Buffalo News
All Rights Reserved 
Buffalo News (New York)

September 7, 2006 Thursday  
FINAL EDITION

SECTION: BUSINESS; Business Briefly; Pg. B7

LENGTH: 615 words

HEADLINE: BUSINESS BRIEFLY

 BODY:

   Labor market may be weathering slowdown

   WASHINGTON (AP) -- The number of newly laid off workers filing claims for unemployment benefits dropped by a bigger-than-expected amount last week, signaling continuing labor market strength despite a general economic slowdown.

   The government reported today that applications for jobless benefits totaled 310,000, down 9,000 from the previous week. It was the biggest decline in seven weeks and was a larger improvement than analysts had been expecting. 

   Many businesses, faced with a slowing economy, have reduced their plans to hire new workers but so far have not resorted to large-scale reductions in existing payrolls.

   The total number of jobless claims was the lowest since 299,000 people showed up at unemployment offices the week of July 22.

   ***

   Two of six civil charges against Greenberg dropped

   ALBANY (AP) -- State Attorney General Eliot Spitzer has dropped two of six civil charges against former American International Group CEO Maurice "Hank" Greenberg and another former executive of the company, a top Spitzer attorney said Wednesday.

   Greenberg's legal team said that "the most explosive and financially significant claims" had been dropped.

   Spitzer said he will still pursue the most serious accusations involving deceptive accounting claims, but will drop charges that became moot after AIG settled a case brought by Spitzer against the company, paid some restitution and adopted accounting reforms.

   ***

   2006 Dodge Rams recalled

   WASHINGTON (AP) -- Chrysler said Wednesday it was recalling about 145,000 2006 Dodge Ram 1500 pickups to replace the passenger air bag pack and reprogram the air bag's computer system.

   The automaker said it would also replace the front passenger seat belt assembly in the same vehicles because it may not allow an owner to properly secure a limited number of child restraint systems. The assembly will be replaced in the recalled pickups plus about 15,000 additional Ram pickups from the same model year.

   ***

   Bonus for  Adelphia CEO? 

   NEW YORK (Bloomberg) -- Adelphia Communications Corp. asked a judge for permission to pay its chief executive officer as much as $16.6 million in bonuses to encourage him to stay until the bankrupt cable operator winds down operations.

   William Schleyer deserves the reward for executing the company's $16.7 billion sale to Time Warner Inc. and Comcast Corp., Adelphia said in a Sept. 1 filing with U.S. Bankruptcy Court in New York. Adelphia will give most of the proceeds from the sale to creditors owed more than $18 billion.

   "The premature departure of the CEO could result not only in significant financial losses to the estate, but could also trigger more widespread departures among the debtor's remaining personnel," Adelphia lawyer Shelley Chapman wrote in the joint filing with the company's committee of unsecured creditors.

   ***

   Delphi seeks big GM tab

   NEW YORK (AP) -- General Motors Corp. owes $26 billion to Delphi Corp., a stockholders committee for the spun-off auto parts maker said in a bankruptcy court filing.

   The stockholders made the assertion in a document to oppose a motion brought by Delphi's bondholders that they be allowed to sue GM and certain former Delphi executives.

   GM, for its part, has filed an unsecured multibillion-dollar claim against Delphi, the Troy, Mich.-based supplier said last month. The automaker aided Delphi in funding buyout programs for members of its two biggest unions, though it retained the right to recoup those contributions once Delphi emerges from court protection.
 
   Both Delphi committees say GM used the spin-off to pass on certain retirement, health care and labor costs to Delphi, crippling it and eventually pushing it into bankruptcy.

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          DATE: APRIL 18, 2007

        CLIENT: A
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Copyright 2005 The Deal, L.L.C. 
Daily Deal/The Deal

February 3, 2005 Thursday

SECTION: BANKRUPTCY; Dip Financing

LENGTH: 520 words

HEADLINE: Lenders add to Adelphia DIP

BYLINE: by Peter Lauria

HIGHLIGHT: 

   J.P. Morgan and Citigroup increase their loan by $300 million and extend its due period one year.

 BODY:

   Despite entering the final phase of its auction process, or perhaps because of it, bankrupt cable operator Adelphia Communications Corp. has gotten permission from its postpetition lenders to increase the size of its debtor-in-possession loan by $300 million and extend its maturity for another full year.

   In a filing Tuesday, Feb. 1, with the Securities and Exchange Commission, Adelphia said its DIP lenders, J.P. Morgan Chase & Co. and Citigroup Global Markets Inc., agreed to increase the size of the loan to $1.3 billion from $1 billion and extend its duration to March 2006 from next month.

   The lenders plan to launch a bank call on Monday with the changes. 

   The move followed by a day the deadline to submit bids for Adelphia to its bankers at UBS and Allen & Co.

   According to a source, Time Warner Inc. and Comcast Corp. submitted a joint bid for all of Adelphia valued at around $17 billion. That bid, which the source said is to be 75% financed by Time Warner, cemented the duo's status as the auction's frontrunners.

   Time Warner's shouldering of most of the financial burden makes sense given that Comcast's principal motivation for taking part in the auction is to unwind its partnerships with both Adelphia and Time Warner.

    Greenwood Village, Colo.-based Adelphia, the nation's fifth-largest cable operator with more than 5 million subscribers, received a competing offer for the company from private equity firms Kohlberg Kravis Roberts & Co. and Providence Equity Partners, though that bid is believed to be less than the $17 billion Time Warner and Comcast offered.

   While those were the only two bids for the entire company, the source said other private equity firms submitted bids for one or more of Adelphia's seven geographic clusters.

   But the amendments to Adelphia's DIP facility suggest that the company might be unhappy with the bid valuations or unwilling to accept a lowball offer.  Adelphia CEO  William Schleyer has always maintained that the company could emerge from its Chapter 11 bankruptcy proceedings as a stand-alone entity.

   "They may be trying to signal to bidders that they could still come out of bankruptcy on their own," said the source.

   But other sources had a more prosaic view of the DIP changes. According to another source close to Adelphia, the extension of the DIP's maturity signifies nothing more than the fact that "the case is taking longer than expected to resolve," while the increase in its amount "is to cover system build outs and fees associated with the many lawsuits against the company."

   Professional fees cost Adelphia about $20 million a month.

   To be sure, though final bids were collected Jan. 31, it will still take several months to execute a sale agreement under bankruptcy court supervision, and with the DIP scheduled to expire next month, Adelphia's lenders had no choice but to extend the deadline.

   Moreover, the increase to $1.3 billion is still less than the $1.5 billion DIP originally extended to Adelphia. The company had lowered the DIP amount to $1 billion prior to undertaking an auction on the belief that it would emerge from bankruptcy sooner than anticipated.

URL: http://www.TheDeal.com

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          DATE: APRIL 18, 2007

        CLIENT: A
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Copyright 2004 Reed Elsevier Inc.

Daily Variety
 
July 15, 2004, Thursday

SECTION: NEWS; Pg. 6

LENGTH: 527 words

HEADLINE: BANKING ITS OPTIONS

BYLINE: MICHAEL LEARMONTH

 HIGHLIGHT:
Troubled Adelphia taps advisers for possible sale

 BODY:
   NEW YORK --- Bankrupt cabler Adelphia Communications tapped UBS and boutique firm Allen & Co. to manage a possible sale of the company, ending a search made more difficult by the fact that many Wall Street firms had tangled relationships with the company when it collapsed in 2002.

   The selection of UBS, Allen & Co. and legal advisers Sullivan & Cromwell are subject to approval by U.S. bankruptcy court.

   Adelphia decided to explore a sale in April after shareholder outcry over the low valuation the new management had put on the company as part of its plan to emerge from bankruptcy as an independent entity. 

   The reorganization plan valued the nation's fifth-largest cabler at $17 billion, but analysts say a sale could fetch north of $20 billion, leaving the possibility of additional financial recovery for investors fleeced when the company filed for bankruptcy in 2002.

   The potential sale is part of a two-track reorg process. The other track would have the cable company emerge as an independent entity later this year.

   The management of the company has pay incentives tied to bringing the company out of bankruptcy as an independent company, but  Adelphia CEO  Bill Schleyer has said he will pursue the course that best serves the company's creditors, which are mainly the senior secured debt holders.

   "We are confident that this team will work closely with our management and board of directors to create the best possible outcome for our constituents," he said in a statement.

   Earlier this month the U.S. bankruptcy court approved an $8.8 billion financing commitment by JPMorgan Chase, Credit Suisse First Boston, Citigroup and Deutsche Bank to allow it to emerge from Chapter 11 bankruptcy protection as an independent entity.

   A sale of the company is made more difficult by the fact that the company still doesn't have audited financial results for 2002 or 2003 and the company is restating results from 1999 to 2001. Several former members of its accounting department pleaded guilty earlier this year to providing false information on the company to the public as part of plea agreements in the trial of the founding Rigas family.

   Current management of the company has a team of 60 accountants going through 7 million journal entries to untangle the mess.

   Nevertheless, Time Warner, Comcast and Cox have all expressed interest in all or part of Adelphia's systems, which are scattered around the country but have large concentrations in upstate New York as well as Florida and Los Angeles.

   Los Angeles system, the area's largest, is the crown jewel of Adelphia's holdings. The winner of that system would become the dominant player in the L.A. market, the nation's second largest, which is now chopped up by a half dozen major cable operators.

   Adelphia collapsed into bankruptcy after it revealed to investors that it had guaranteed $2.3 billion in co-borrowing loans to the founding Rigas family. Company founder John Rigas and son Timothy Rigas were recently found guilty of fraud and conspiracy in connection to Adelphia's collapse and await sentencing. The trial of a second son, Michael Rigas, ended in a mistrial.

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          DATE: APRIL 18, 2007

        CLIENT: A
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Copyright 2004 PBI Media, LLC. All rights reserved.  
CABLEFAX DAILY
 
July 2, 2004

SECTION: Vol. 15, No. 127

LENGTH: 260 words

HEADLINE: 2-Track Mind: Adelphia Has Options as Court OKs Plan

 BODY:

       A U.S. bankruptcy court's approval of Adelphia's $8.8bln blueprint to
emerge from Chapter 11 doesn't answer all the questions surrounding the MSO's
future. The ruling opens the door for Adelphia to sell off assets, either in a
single outright deal or a piecemeal land grab by people like Cox, Comcast and
Time Warner Cable. Adelphia avers that things could still go either way, saying
it "remains on a dual track process of vigorously pursuing a sale of the company 
and, on a parallel path, preparing for emergence from Chapter 11 as an
independent entity." In other words, whichever path ends in the greatest
possible valuation for the company will be the one Adelphia ultimately decides
to meander down. No word on the Equity Committee's reaction following the
court's approval; that group of investors and shareholders has argued it'd take
in a significantly higher windfall should Adelphia forego a reorg and auction
itself off immediately after exiting bankruptcy. -- Details, Details:  The court 
gave the MSO's exit financing package the thumbs up following 2 days of court
hearings last week and conditional approval June 22. Final clearance came after
Adelphia and lenders/creditors agreed on modifications. Adelphia will receive
the $8.8bln in loans from J.P. Morgan Chase, Citigroup, Credit Suisse First
Boston and Deutsche Bank (Cfax 2/26). Earlier,  Adelphia CEO  Bill Schleyer told 
us the money would be earmarked for continued rollout of advanced digital
services (HD, VOD and DVR).

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          DATE: APRIL 18, 2007

        CLIENT: A
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Copyright 2004 Reed Business Information US, a division of Reed Elsevier Inc.
All Rights Reserved  
Broadcasting and Cable
 
April 26, 2004

SECTION: Top of the Week; Pg. 4

LENGTH: 329 words

HEADLINE: Adelphia's For Sale, But It's All or Nothing

BYLINE: By John M. Higgins

 BODY:
   Cable operators hungry for a deal are cheering Adelphia Communications' decision to put its 5.4 million-subscriber portfolio up for sale. But Adelphia is disappointing them by refusing to break its operations up into several clusters. It wants to sell the company in one piece. 

    Adelphia CEO  Bill Schleyer says a breakup creates too many problems, particularly triggering some tax land mines. "We're definitely only going to sell the company as a whole," he says. "The issue of selling it in pieces is incredibly complex."

   But Adelphia's price tag--expected to run between $17 billion and $20 billion--might be a powerful dissuader.

   To some, Adelphia's parts are more interesting than its whole. Cox, Comcast, and Time Warner openly covet the 1.3 million-subscriber metro Los Angeles operation. That market is Balkanized among several cable operators and cries out to be consolidated in the hands of one player, like the Chicago and San Francisco metro areas. A similar bidding war could be created in upstate New York and in Cleveland. A few buyout firms would likely bid for smaller units.

   Schleyer and sidekick Ron Cooper, Adelphia's COO, had resisted a sale while the company is in Chapter 11, arguing that creditors will get more money out if they reorganize, get operations running better, and sell later. Creditors pressured them to change their strategy.

   The big snag: Two big buyers are tied up. It's hard for Time Warner to deal while the SEC continues to examine past accounting practices. And Comcast has been in the hunt for Walt Disney Co., although that doesn't seem to be going anywhere.

   Some creditors have criticized Schleyer and Cooper's resistance to selling now, noting that the executives' compensation deals give them less of a personal payout if Adelphia sells before completing Chapter 11. Schleyer denies that motivation: "My compensation package has nothing to do with any strategic decision this company made and never will."

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**********************************06138**********************************

          DATE: APRIL 18, 2007

        CLIENT: A
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Copyright 2004 P.G. Publishing Co.  
Pittsburgh Post-Gazette (Pennsylvania)

February 26, 2004 Thursday SOONER EDITION

SECTION: BUSINESS, Pg.D-1

LENGTH: 901 words

HEADLINE: BANKERS VALUE ADELPHIA AT $17 BILLION;
NEW REORGANIZATION PLAN ENVISIONS EXIT FROM BANKRUPTCY BY YEAR-END

BYLINE: GEORGE MANNES THESTREET.COM

 BODY:
   Adelphia Communications yesterday filed a plan to emerge from Chapter 11 by the end of the year, with the help of what the company says is the largest bankruptcy-exit financing ever.

    But though management strongly hints that current Adelphia shares will be worthless after the reorganization, the penny shares rose yesterday on the news -- a signal that some Adelphia shareholders haven't given up hope on their attempt to force a sell-off of Adelphia's cable systems, a plan they maintain would provide "considerable value" to current stockholders.

    The reorganization plan filed by Greenwood Village, Colo.-based Adelphia came two days after jury selection began in the fraud trial of several former Adelphia executives including chairman and founder John J. Rigas and two of his sons. It served as a reminder that, though the Rigas family may be accused of looting the cable operator, inflating its subscriber count and overstating the quality of its infrastructure, what remains of the former Coudersport, Potter County-based concern is substantial indeed. 

    As part of yesterday's filing, management disclosed that investment bankers at Lazard Freres had assigned a value to the company of $17 billion, excluding subsidiaries it doesn't control.

    The financing package "gives us what we need to be a stand-alone company, independent and growing very rapidly," current  Adelphia CEO  William Schleyer said yesterday in a conference call following the reorganization plan filing.

    Adelphia's 5.4 million subscribers, including about 300,000 claimed through the minority interests, make it the fifth-largest operator of cable systems in the country. That size, combined with a management team that doesn't fit the cable industry tradition of an entrenched family-led management -- of which the Rigas family had been a prime example -- has led to the observation that Adelphia, upon emergence from bankruptcy, is an obvious takeover target.

    Schleyer declined in the conference call to answer a question about what anti-takeover provisions, such as a poison pill or staggered director elections, the company might put in place. Schleyer said that any such measures would be disclosed in the bankruptcy emergence process.

    Adelphia's shares were quoted at 44 cents yesterday, up a penny. Other than the hope of finding a greater fool to purchase such shares, perhaps what's holding the stock up is a bet that some benefit will accrue to current shareholders if they are able to formally propose their rival asset-sale plan.

    Under the terms of management's plan announced yesterday, certain creditors, including banks that lent money to Adelphia before its 2002 bankruptcy filing, are slated to be paid 100 percent of their claims in cash.

    Other creditors will receive preferred stock in Adelphia, new common stock or an interest in a trust that's seeking to recover money from lawsuits filed against the Rigas family, former Adelphia auditor Deloitte & Touche and financial institutions involved in the loans that led to the Rigas ouster.

    These enabled Adelphia and the Rigas family to borrow money under the same arrangements, but left Adelphia on the hook for any debts the Rigases were unable to pay.

    Common shareholders will get a piece of that lawsuit money under the current plan, but only after creditors sharing that pot are paid in full, Schleyer said. That would require recovery of "well north of $3 billion" from the lawsuits, he said.

    A committee of shareholders says they would get more money through an asset sale, benefiting from a soaring market for cable stocks and a likely premium to public-market prices.

    Schleyer said Adelphia hasn't received any formal or informal offers for the company, and that the company would fight the shareholder committee's attempt to propose its rival plan.

    The exit financing package announced yesterday includes a $3.3 billion bridge loan and $5.5 billion in senior secured credit facilities, including a $750 million revolving credit facility.

    The company says it expects to have $8 billion in debt at the time it emerges from bankruptcy.

    The $17 billion valuation, which Adelphia says was based on a discounted cash flow model, public market valuations of other cable operators and recent private transactions, implies an average value of $3,333 for each of Adelphia's 5.1 million non-minority interest subscribers.

    That per-sub figure -- a common though unscientific industry yardstick -- falls in the middle of the range of per-sub values ascribed to other major publicly traded cable operators.

     For example, earlier this week Credit Suisse First Boston cable analyst Lara Warner calculated that, based on current stock prices, per-sub values ranged from about $2,500 at the low end, for Mediacom, to more than $4,500 for New York-based Cablevision.

    Comcast, the nation's largest operator of cable systems, came in above $3,800, along with Cox.

    Schleyer noted that the company still has to overcome several hurdles to emerge from Chapter 11. Major ones include the bankruptcy court's approval of the company's draft disclosure statement, creditor approval, audits of the company's financial statements from 1999 through 2001, completion of 2002-03 statements, and the settlement of litigation filed by the Securities and Exchange Commission.

 NOTES:
This story first appeared yesterday in the online financial news site, TheStreet.com

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