Adelphia’s bankruptcy exit plan is activated

Adelphia Communications Corp. can implement its plan to exit bankruptcy protection and distribute $17 billion in stock and cash to thousands of creditors, a federal judge ruled.

U.S. District Judge Shira Scheindlin in New York last month delayed activation of the plan, ordering a group of Adelphia note holders to post a $1.3-billion bond while she considered its objections. The group lost its appeal and declined to post the bond, in effect activating the exit plan.

The company said the plan would be implemented today. Adelphia, once the fifth-biggest U.S. cable TV company, can now distribute shares in Time Warner Cable Inc. that it received in return for selling its assets to Time Warner Inc. and Comcast Corp. last year. The stock is worth about $6.7 billion.