Adelphia Communications Corp. is attempting to block a move by its
equity-shareholders committee to hire a sixth professional adviser, claming that
the committee is playing fast and loose with the bankrupt MSO's money.
In a document filed March 25, Adelphia claimed that the equity committee's
request to hire Kagan Media Appraisals -- a unit of Carmel, Calif.-based The
Kagan Group -- at between $150 and $600 per hour for expert analysis and
testimony regarding valuations of Adelphia's business and valuation trends in
the cable industry is unnecessary.
Kagan would also charge a minimum of $6,000 per day when any testimony is
proffered, regardless of how much time it spends in court.
According to the document, the equity committee has already hired five
separate experts at a monthly cost of $730,000. That includes $150,000 per month
to Saybrook Restructuring Advisors, which Adelphia claims is providing the same
services Kagan would.
Saybrook, according to the filing, was hired to provide valuation analysis of
Adelphia's businesses and related expert testimony.
"There is no justification for the equity committee to be incurring
professional fees at anywhere near the current rate," Adelphia said in the
filing, adding that the committee is spending Adelphia's funds "with reckless
The equity committee is led by Citizens Communications Corp. chairman Leonard
Tow, one of Adelphia's largest individual shareholders.
When he owned Century Communications Corp., Tow was considered by many in the
cable business to be one of its most frugal operators.