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August 1, 2006
GREENWOOD VILLAGE, Colo. -- Adelphia Communications Corporation (OTC:ADELQ) today completed the sale of substantially all of its assets to Time Warner Cable and Comcast Corporation for 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.
"The successful closing of this sale signals a major achievement for Adelphia's Chapter 11 bankruptcy case on several fronts," said Chairman and CEO William Schleyer. "We've maximized the recovery for our creditors, dramatically improved the quality and performance of the systems going to Time Warner Cable and Comcast and saved almost 13,000 jobs. That stands in stark contrast to the situation almost 40 months ago when there was serious talk of liquidating Adelphia."
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 Communications Corporation 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 U.S. Bankruptcy Court for the Southern District of New York (case number 02-41729).
On July 24, 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.
"While our focus now turns to achieving a confirmed Plan of Reorganization as soon as possible," added Schleyer, "we should take this opportunity to thank Adelphia's employees who had the faith to endure through four years of uncertainty and whose hard work significantly increased values to our creditors and delivered much-improved cable systems to our buyers."
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