Time Warner Cable Is Public
By Multi Channel News Staff -- Multichannel News, 2/13/2007 1:50:00 PM
Time Warner Cable became a public company Tuesday as a result of the Adelphia Communications bankruptcy reorganization plan taking effect.
Trading in Time Warner Cable class-A shares, on the New York Stock Exchange (symbol: TWC), could begin as soon as March 1, the company said.
By going public in this way -- absorbing the shell of the formerly traded Adelphia -- Time Warner Cable avoided the time and expense of an initial public offering. The company said it withdrew a previously filed S-1 stock-registration statement that had kept the IPO option active.
Adelphia’s cable assets were sold to Time Warner Cable and Comcast last July. Part of the compensation to Adelphia was 156 million Time Warner Cable class-A shares (16% of the total outstanding base).
The stock distribution was held up, though, while bondholders challenged the bankruptcy reorganization plan.
As a result of the Adelphia reorganization plan taking effect Tuesday, though, most of the Time Warner Cable stock Adelphia received will be distributed to Adelphia stakeholders. This ends Adelphia’s obligation to sell a portion of the shares in an underwritten public offering, Time Warner said.
Adelphia and Time Warner Cable expect about 75% of the shares to be distributed within the next week. The remaining shares are expected to be distributed over the coming months as remaining disputes are resolved by the bankruptcy court, including the 4% of the shares being held in escrow in connection with Time Warner Cable’s acquisition of assets from Adelphia, Time Warner said.
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