Adelphia to begin distributing holdback shares with recalculated value of $37.8038

By Caroline Salls

Pittsburgh, June 22 - Adelphia Communications Corp. completed the "true up" mechanism under its plan of reorganization and will begin distributing withheld shares of Time Warner Cable class A common stock with a recalculated deemed value of $37.8038, according to a company news release.

On the plan effective date, 23.16 million shares of TWC class A common stock were withheld from a settlement distribution and from distributions to holders of claims against Adelphia and its subsidiary debtors.

Those withheld shares were deposited in a true up holdback account, and, under the true up mechanism, the recipient of the settlement shares and holders of claims against the subsidiary debtors received an initial distribution of shares of TWC class A common stock and had the potential to receive additional shares of TWC class A common stock from the true up holdback based on a recalculated deemed value.

Adelphia said the plan administrator filed an explanation of the method of recalculation of the deemed value with the U.S. Bankruptcy Court for the Southern District of New York on June 15, which set the deemed value of the TWC class A common stock at the conclusion of the 60-day test period at $37.8038.

Since no objections to the recalculation were received by June 20, the new deemed value will stand and the company will begin distributing all shares in the true up holdback to holders of record of note claims as of Feb. 13 and to holders of record of all other claims as of Jan. 10.

According to the release, the deemed value was recalculated to be the volume-weighted average price per share during market hours of the TWC class A common stock during a 60-day test period as specified in the plan.

To the extent the shares in the true up holdback are not distributed to the recipient of the settlement shares and creditors of the subsidiary debtors, the shares will be distributed to parent company creditors or reserved for disputed claims against Adelphia.

Adelphia, a Greenwood Village, Colo.-based cable operator, emerged from bankruptcy on Feb. 13. Its Chapter 11 case number is 02-41729.

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