Adelphia Recovery Trust Announces $175M Settlement
2 min readEndeavor News
More than eight years after Coudersport-based Adelphia Communications Corp. spiraled into bankruptcy, lawyers and financial managers are still untying the Gordian knot that represents the company’s remaining assets.
Television cable systems across the country were sold to Comcast and Time Warner in 2006 to help creditors recover a portion of their losses.
Most recently, the Adelphia Recovery Trust announced that it has reached an agreement to settle its claims against the corporation’s “pre-petition” lenders and investment banks for $175 million.
If the settlement is approved, it will resolve all claims pending in the bank litigation, except the trust’s fraudulent conveyance claims against Goldman Sachs arising from Adelphia’s pre-petition repayment of the Rigas family’s personal margin loans.
Also unresolved are the trust’s claims against Key Bank or HSBC Bank in litigation over Buffalo Sabres hockey team ownership interests, and its claims involving Florida Power and Light, Prestige Cable and Adelphia’s former outside legal counsel.
Adelphia Recovery Trust was formed in 2007 as part of a court-approved Chapter 11 bankruptcy reorganization.
Although an interim management team relocated most of the company’s corporate offices to Denver and subsequently dismantled its management team, about eight Adelphia Recovery Trust employees remain on the job in mobile offices located along Water Street in Coudersport.
Former Adelphia President and CEO John Rigas and his son Tim, the company’s former chief financial officer, began serving prison sentences at Butner, N.C., in August 2007, after being convicted of fraud in their financial leadership of Adelphia.
