MUMBAI: US cable television company Adelphia Communications Corporation has completed the sale of all of its assets to Time Warner Cable and Comcast Corporation for the aggregate consideration of approximately $12.5 billion in cash and approximately 16 percent of the equity of Time Warner’s cable subsidiary.
As a result of the sale, Adelphia will no longer operate as a U.S. cable company. Its approximately 4.8 million customers will be distributed between Time Warner Cable and Comcast.
Teams from the buyers and Adelphia have worked together for months to ensure an orderly transition for customers, communities and the almost 13,000 Adelphia employees who will transfer to Time Warner Cable and Comcast, states an official release.
Concurrent with the closing of the sale, Adelphia also consummated a plan of reorganization for the former joint ventures with Comcast (Century-TCI and Parnassos), resulting in the repayment in full of approximately $1.7 billion of indebtedness. Adelphia will hold the remaining sale proceeds for distribution to its creditors through a Plan of Reorganization as it seeks to resolve its Chapter 11 bankruptcy case in the US Bankruptcy Court for the Southern District of New York.
On 24 July 2006 Adelphia announced an agreement on a framework for a Plan of Reorganization intended to result in a fourth quarter 2006 emergence from Chapter 11. The agreement enjoys widespread support among Adelphia’s major unsecured creditors, including the Official Committee of Unsecured Creditors, though several constituencies do not support it. Adelphia’s obligations under the agreement and the reorganization plan envisioned by it are subject to approval by the Bankruptcy Court.
UBS Investment Bank and Allen & Company LLC served as Adelphia’s financial advisors for the sale transaction. Sullivan & Cromwell LLP served as Adelphia’s legal advisor for the sale. Willkie Farr & Gallagher LLP continues to serve as Adelphia’s legal counsel for the Chapter 11 bankruptcy process.
