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Adelphia FrontierVision noteholders criticize latest plan changes
New York, April 21 - Holders of notes issued by Adelphia Communications Corp.'s FrontierVision subsidiary objected to changes in the company's plan of reorganization in a filing Friday with the U.S. Bankruptcy Court for the Southern District of New York.
The filing, from the ad hoc committee representing holders of $239 million in senior notes issued by FrontierVision Holdings LP and $106 million in senior notes issued by FrontierVision Operating Partners LP, noted that the supplement to the disclosure statement includes "radical changes" in recoveries for some groups of creditors - although it noted there were positive changes to the reorganization plan too.
Specifically the committee is concerned that the FrontierVision Holdings notes will see much lower recoveries while the FrontierVision Operating notes are the only ones at an operating subsidiary that will be paid in Time Warner class A common stock rather than the cash previously promised in November.
The committee said it needed a full disclosure of the record developed to date on value allocation, including ranges of recovery; a detailed breakdown of the debtors' best estimate of all claims at the FrontierVision Holdings and FrontierVision Operating levels, including trade, administrative, DIP and tax claims; a chart showing the application of cash among the debtor groups; and a clear explanation of the methodology the debtors have used in allocating cash versus Time Warner class A common stock among the debtor groups and creditor constituencies.
In addition, the noteholders requested clear disclosure on the creation of and basis for the new bank claim class at FrontierVision Holdings and whether the FrontierVision Holdings convenience class claim still exists.
Adelphia, a Greenwood Village, Colo.-based cable operator, filed for bankruptcy on June 25, 2002 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 02-41729.
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