Adelphia Wins Settlement

WILMINGTON, Del. -- The Adelphia Recovery Trust announced today that it has reached a $167.5 million settlement of its claims against Adelphia's former auditor Deloitte & Touche LLP in the lawsuit entitled Adelphia Communications Corp. v. Deloitte & Touche LLP, No. 000598 (Pa. Court of Common Pleas, Phila. Cty). Adelphia's claims against Deloitte & Touche were transferred to the Trust under the terms of the First Modified Fifth Amended Joint Chapter 11 Plan for Adelphia Communications Corporation and Certain of its Affiliated Debtors on February 13, 2007.

Under the terms of the settlement, Deloitte & Touche will transfer the $167.5 million settlement payment into an interest-bearing escrow account for the benefit of the Trust pending approval of the settlement by United States Bankruptcy Judge Robert E. Gerber. The escrow funds, including interest, will be released to the Trust upon final approval of the settlement.

The settlement was negotiated under the supervision of the Honorable Daniel Weinstein (Ret.). The Trust stated through a spokesperson: "We are pleased with the settlement, which is among the largest settlements ever reached between a public accounting firm and its audit client. This settlement does not resolve the Trust's claims against Adelphia's former lenders and others who took part in a massive financial fraud perpetrated against Adelphia, and the Trust will continue to prosecute those claims vigorously to conclusion."

In a separate release:

WILMINGTON, Del. -- The Adelphia Recovery Trust announced today a settlement of all pending litigation and bankruptcy claims between Leonard Tow, Claire Tow, related entities, David Z. Rosensweig, and Adelphia. Upon approval of the settlement by United States Bankruptcy Judge Robert E. Gerber, the Trust shall receive consideration comprised of (i) a cash payment of approximately $15.6 million and (ii) an interest bearing note in the principal amount of $4,875,250 to be issued by Adelphia.

The Trust in its discretion may retain some or all of the settlement proceeds for funding its operations, including expenses incurred to maintain and administer the Trust and prosecute Trust litigation, all subject to the terms and conditions of the Plan and the Declaration of Trust. No decision has been made as to the amount or timing of any distributions to Trust interest holders.

Adelphia Communications