Insolvent cable operator Adelphia Communications has been granted the first $500 million instalment of the loan it needs to restructure its way out of Chapter 11 bankruptcy.
Judge Robert Gerber last weekend approved the immediate release of one third of the total sum from funds made available by a banking consortium led by J P Morgan Chase & Co and Citigroup.
The cash will be used to continue day-to-day trading while the company constructs its capital spending plans to present in the fall to the US Bankruptcy Court in Manhattan. The plan will include the upgrading of its networks with broadband internet and digital cable services.
The Adelphia borrowing represents America’s second-largest debtor-in-possession loan ever, surpassed only by Kmart’s $2 billion facility earlier this year.
Data sourced from: The Wall Street Journal Online; additional content by WARC staff