Adelphia Franchise Beef Lands in Court

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Three New Hampshire cities will get a chance to prove to a federal court that
they didn't discriminate against Adelphia Communications Corp. by unfairly using
its financial woes as a reason to revoke its local franchises.

But participants in a hearing in the Southern District of New York Tuesday
said U.S. District Judge Robert Gerber indicated that the inquiry will be
limited to whether the cities -- Milford, Hudson and Litchfield -- violated
discrimination rules in the bankruptcy code. He won't allow the parties to argue
cable-franchise issues.

The cities revoked the franchises shortly after Adelphia declared bankruptcy
last summer. But officials with the cities said the move followed four years of
fruitless negotiations, during which the local franchises expired.

Adelphia countered by suing the cities in U.S. District Court in New
Hampshire.

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