The unsecured creditors of bankrupt Adelphia Communications – America’s sixth largest cable company – are not at one with the company’s bondholders and investors.
A committee, representing the former, publicly welcomed the recent appointment of two former AT&T Broadband executives to steer the firm out of Chapter 11 bankruptcy protection; the latter bitterly oppose it – particularly the size of their paychecks [WAMN: 23-Jan-03].
In a filing with the New York bankruptcy court, the committee hailed the “excellent decision” by Adelphia’s board to appoint William Schleyer as chairman/ceo and Ronald Cooper as president/coo. Both held mirror roles at AT&T Broadband prior to its sale last year to Comcast.
The creditors’ enthusiasm for the pair runs counter to the views of other, decidedly conflicting, interests – those of John Rigas (Adelphia’s founder and former chairman who, with two of his sons is currently under federal indictment for company-related fraud), and five of Adelphia's largest shareholders.
All are objecting to the appointments, purportedly on grounds that “few of the top two hundred companies, ranked by sales, reward their ceos as richly, and none the size of [Adelphia] do”.
Bankruptcy court judge Robert Gerber is scheduled to hold a hearing on the appointments on Monday.
Data sourced from: Financial Times; additional content by WARC staff