Adelphia Communications Corporation
February 13, 2007
Compass Advisers, LLP ("Compass") provided financial advisory services to the Steering Committee of the Ad Hoc Committee of Non-Agent Secured Lenders of Adelphia Communications Corporation, et.al., Calyon New York Branch, and Bank of America, N.A. (together, the "Adelphia Century Group Lenders") during the Chapter 11 bankruptcy proceedings of Adelphia Communications Corporation ("Adelphia"). The Adelphia Century Group Lenders required financial advisory expertise in connection with the confirmation hearing of Adelphia's Plan of Reorganization and Disclosure Statements dated October 16, 2006 (the "Second Amended POR") and the proposed distributions to the Adelphia Century Group Lenders under this Second Amended POR or any other plans of reorganization presented in these cases.
Compass assisted the Adelphia Century Group Lenders with issues related to the valuation and solvency issues of various Adelphia entities, the potential recoveries pursuant to the multiple plans of reorganization, and negotiations related to the proposed interest rate to be paid on funds escrowed subsequent to the effective date of a plan of reorganization. Compass also provided strategic guidance regarding tactical options for negotiating a consensual plan of reorganization, solvency issues of various Adelphia entities, and prepared for expert witness testimony in connection with the confirmation hearing of a final plan of reorganization, protecting the interest of and achieving the best possible outcome for the Adelphia Century Group Lenders.
The First Modified Fifth Amended Joint Plan of Reorganization was confirmed on January 5, 2007 and the company exited Chapter 11 as that plan became effective on February 13, 2007. Adelphia, founded by the Rigas family and once the fifth-largest cable and telecommunications company in the United States, sold the majority of its revenue-generating cable business to Comcast and Time Warner, and its telecommunications business to Pioneer Telephone.