Adelphia Offered Lower Settlement, Creditors Say

Adelphia Communications Corp., which agreed to pay $715 million to settle a U.S. fraud case, originally sought to pay as little as $175 million, increasing its offer only after threats of indictment, creditors said.

In court papers, the company’s unsecured creditors committee asked a federal Bankruptcy Court judge in New York to block the settlement, saying the accord was too lenient on founder John Rigas and his family. The pact would end the SEC lawsuit and spare the company from criminal prosecution.

U.S. Bankruptcy Court Judge Robert Gerber must approve the deal before John Rigas and his son Timothy are sentenced for their roles in the fraud.