Court OKs Adelphia Interest Payment

Adelphia Communications Corp. won court approval to pay $1.23 billion in interest to unsecured creditors under its plan to exit bankruptcy protection.

U.S. Bankruptcy Judge Robert Gerber in New York said the interest payments were fair and appropriate for creditors who had waited to be paid since the cable operator filed for Chapter 11 bankruptcy protection in June 2002.

Several creditor groups opposed Adelphia’s proposal, arguing that the company was paying either too much or too little.