Adelphia, L.A. Settle Dispute - Multichannel

Adelphia, L.A. Settle Dispute

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Adelphia Communications Corp. paid $2.6 million to the city of Los
Angeles to resolve a dispute over franchise-fee accounting predating the
company’s bankruptcy.

The shortfall was discovered as part of an audit of payments made by the
city between 1995 and 1999. The city alleged that the previous operator, Century Communications Corp., did not
appropriately account for revenues such as home shopping shares.

The company has placed $600,000 -- representing the newly identified unpaid
fees and separate from the $2.6 million -- in an escrow account as it continues talks with the city, according to
executives.

Adelphia installed a new regional vice president of law and public policy,
Tom Carlock, two months ago. His message to the city has been, "This is a new
Adelphia." City Council members often responded by challenging him to prove it
with fee payments.

In a prepared statement, Carlock noted that the company has taken action
locally to prove that it is a quality service provider and good corporate
citizen.

"We hope these actions are viewed as they are meant: positive, responsive
efforts to create a renewed cable leader in the community," he
said.

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