Adelphia Communications Corp. has asked the U.S. Bankruptcy Court for the
Southern District of New York for permission to shutter 14 of its 17
competitive-local-exchange-carrier markets and to sell nearly all of the related
In the filing, made late Aug. 29, Adelphia said the 14 targeted operations
are its poorest performers and have lost a combined $81.5 million for the 12
months ended March 31.
The company also asked for approval of severance packages for 125 employees
who would be terminated as a result of the shutdowns. Adelphia said it did not
expect the cost of the severance package to exceed $250,000.
Adelphia would continue to operate CLECs in Buffalo, N.Y., and Richmond and
Charlottesville, Va. The markets that would be shut down are: Roanoke and
Shenandoah Valley, Va.; Albany and Rochester, N.Y.; Portland, Maine; Providence,
R.I.; Cleveland and Youngstown, Ohio; Connecticut; New Hampshire; Denver; and
Los Angeles, San Diego and Orange County, Calif.
Adelphia bought the properties from its CLEC subsidiary, Adelphia Business
Solutions Inc. (ABIZ), in two separate transactions in December 2000 and October
2001 for $198.3 million. ABIZ manages the CLECs for Adelphia.
The MSO said it is negotiating with ABIZ as to what that entity will be
compensated for continuing to manage the properties during the wind-down
ABIZ filed for Chapter 11 bankruptcy in March, and it is in the process of
restructuring. Adelphia filed for Chapter 11 protection June 25.
Adelphia said it would have to gain approval from federal and state agencies
for the shutdown, and it would have to give customers between 30 and 60 days'
notice of the intent to discontinue service.
The company said that although the Buffalo market has a substantial
subscriber base, the CLECs in Providence, Rochester and San Diego have no
customers. The MSO added that the numbers of telecommunications lines in its 17
CLEC markets range from 0 to 32,700.