Adelphia Shareholders Seek to Auction Assets

Adelphia Communications Corp. shareholders asked a U.S. bankruptcy court for permission to file their own reorganization plan for the cable company that envisions auctioning off its assets.

The motion, filed in the U.S. Bankruptcy Court for the Southern District of New York, was prompted by Adelphia executives’ comments that shareholders would get no value for their holdings under the pending reorganization plan for the Denver-based company.

Separately, a lawyer for Adelphia founder John J. Rigas and his family said the Rigases might file more than $4 billion in claims against the company. The family has until June 30 to file claims covering a loan guarantee and $500 million in bond debt under a settlement approved between the family and Adelphia.