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Adelphia Submits Reorganization Plan

By Mark Scott

Greenwood Village, CO – Adelphia Communications hopes to emerge from bankruptcy protection by the end of the year. Company officials released a reorganization plan Wednesday that they say sets the course for future success.

Adelphia secured $8.8 billion in what's being called "exit financing" from four large banks. Adelphia will use the funds to make payments to creditors but the company says it will not pay any claims from the founding Rigas family. The trial of John Rigas and two of his sons is now underway in a New York City courtroom. Adelphia declared bankruptcy in 2002 in the wake of a financial scandal involving the Rigases.

While the reorganization plan must be approved by Bankruptcy Court, not everyone is happy with it. Shareholders who lost millions in Adelphia's demise say they need to be made whole through a sale of Adelphia. Analysts say that could happen because of a significant demand for attractive cable systems.

But Schleyer says it's Adelphia's goal to emerge from bankruptcy as an independent, stand alone company.