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Long-Awaited Adelphia Bankruptcy May Be Delayed

By Mark Scott

Coudersport, PA – The Reuters news service is reporting that Adelphia's bankruptcy filing could be delayed for a few days. While a filing is possible late Monday, it's more likely to come later this week, a source familiar with the company said.

According to the source, financing arrangements to keep the company running while it reorganizes still must be completed.

"This is a complex agreement with many details to be worked out," the source said.

Adelphia is working on securing $1.5 billion in financing from a group of banks led by Citigroup and J.P. Morgan.

Even though Adelphia is missing interest and dividend payments on its previous debt, financial analyst Anthony Ogorek says it is not at all surprising that the company is able to get more help.

"It's pretty easy to lend money to a company that's in distress if you're already into them pretty good in terms of other money you've lent them," Ogorek said. "There's always a tension. If you put more money in, are the odds increased that you will be able to get more in return? Or are you throwing good money after bad?"

Ogorek, principal of Ogorek Wealth Management in Williamsville, said it could take one to two years for Adelphia to complete its reorganization. He said the real question is will there be an entity called Adelphia at the end of the process.

While bankruptcy will ease the crisis situation that has enveloped the company since March, Adelphia's problems are far from over. Two grand jury investigations as well as a probe by the Securities and Exchange Commission are continuing.