Adelphia Gets OK on Financing
Adelphia Communications Corp. received approval from Bankruptcy Court on Thursday for $8.8 billion in exit financing.
The loans will be used to finance the cable company’s proposed Chapter 11 reorganization.
The cable television company is trying to sell itself and simultaneously is preparing to emerge from bankruptcy protection.
Final approval by the U.S. Bankruptcy Court for the Southern District of New York followed two days of court hearings last week and conditional approval on June 22. Adelphia, the lenders and certain creditors agreed on modifications to gain final approval.
JPMorgan Chase & Co., Credit Suisse First Boston, Citigroup Inc. and Deutsche Bank each will provide an equal share of the financing.
Adelphia filed for bankruptcy protection in June 2002 amid an accounting scandal.
Company founder John Rigas and his sons Timothy and Michael have all been charged with stealing millions from the company. The Rigases have pleaded not guilty.
Adelphia is now based in Greenwood Village, Colo., but was headquartered in Coudersport, Pa., when the accounting scandal broke.
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