Judge Delays Adelphia Bankruptcy Plan

26 January 2007

NEW YORK: Just three weeks after US cable provider Adelphia Communications gained legal approval for its plan to pay creditors and end one of the nation's biggest bankruptcy cases [WARC News: 05-Jan-07], a second New York judge has delayed the move following a request by bondholders.

The group persuaded Judge Shira Scheindlin of a "substantial possibility" that the bankruptcy court judge had made mistakes in approving the plan. She has granted them leave to appeal the reorganization.

Judge Scheindlin, however, required the group to post a $1.3 billion (€1bn; £659bn) bond to help cover losses other creditors might suffer from a delay.

Neither Adelphia nor the bondholders have commented.

Data sourced from New York Times; additional content by WARC staff