Adelphia Makes a Payment on L.A. Bill
Adelphia Communications Corp. announced Wednesday that it has paid Los Angeles more than $2.6 million in outstanding cable franchise fees, a move Adelphia officials hope will help the beleaguered company get back in the city’s good graces.
The Greenwood Village, Colo., company, which filed for bankruptcy last year, has been in a long-standing dispute with Los Angeles over its rates for cable customers and how much it owes in franchise fees, which should equal 5% of its gross revenue.
The payment, which was made last week, does not resolve the dispute, as city officials contend that the cable operator owes nearly $4 million in back fees. But Tom Carlock, Adelphia’s new vice president for law and public policy, said the company’s new management is negotiating with the city on a partial payment of the balance.
“We are looking at this as the positive first step to working with the city,” he said. “We want to continue to build up our credibility with them and every community in Southern California.”
City Councilman Bernard C. Parks, chairman of the council committee that oversees cable franchises, said Adelphia must do much more.
He said he is disappointed that the cable operator has appealed the council’s recent decision to reduce cable rates for Adelphia customers.
“In our judgment, they’re just paying back bills and it doesn’t give any indication that they have a willingness to work with the city,” Parks said.
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