New York – A federal bankruptcy judge on Tuesday paved the way for Greenwood Village-based Adelphia Communications Corp.’s creditors to vote on the cable operator’s Chapter 11 reorganization plan.
Judge Robert Gerber of the U.S. Bankruptcy Court in New York has set a deadline of Nov. 27 for the creditors to accept or reject the plan. A confirmation hearing was scheduled for Dec. 7.
Adelphia filed for reorganization in 2002 after disclosing it had $2.3 billion in off-balance-sheet debt. Founder John Rigas and one of his sons were convicted on fraud charges. A second son received 10 months of home confinement after pleading guilty to a charge of making a false entry in a company record.
On July 31, Adelphia sold its cable business to Time Warner Cable, a unit of Time Warner Inc. in New York, and Comcast Corp. of Philadelphia. In the $17 billion deal, the two largest cable operators in the U.S. got Adelphia’s five million subscribers.
Adelphia was once the nation’s fifth-largest cable television provider.
