The decision, announced Thursday, was made during a meeting Wednesday of Adelphia's board of directors. "We were pursuing a plan of reorganization that called for an independent Adelphia because we believed it was in the best interests of our bankruptcy constituents," said Bill Schleyer, Adelphia's chairman and CEO. "Increasingly, in our continuing dialogue with constituents after filing the plan, it became clear that a broad range of constituents preferred to allow the market to determine the appropriate value for Adelphia." The company filed for bankruptcy protection two years ago in the U.S. Bankruptcy Court for the Southern District of New York amid allegations that its founder and other executives looted the company and cheated investors out of billions of dollars. Company founder, John Rigas, two of his sons and another former executive are being tried on conspiracy and fraud charges. Adelphia -- headquartered in Greenwood Village, Colo. -- filed a long-awaited reorganization plan in February, but ran into immediate opposition from stockholders who preferred to see the company liquidated. Adelphia said at the time that had secured $8.8 billion in exit financing from four banks and hoped to emerge from Chapter 11 by the end of the year. The company said Wednesday it would continue to pursue approval of the financing package, which it said supports the proposed plan for emergence as an independent company. The Rigas family would get nothing under the reorganization plan filed in February.
Adelphia to explore possible sale of cable company
DENVER (AP) - Adelphia Communications Corp., the nation's fifth-largest cable television provider, plans to explore a possible sale of the company as part of its Chapter 11 reorganization, yielding to pressure from creditors.
