The U.S Bankruptcy Court for the Southern District of New York has
approved $1.5 billion in debtor-in-possession financing for Adelphia
The approval releases about $1 billion of the DIP financing. On June 28, the
court approved an initial advance on the facility of up to $500 million.
A consortium of lenders led by J.P. Morgan Chase & Co. and Citigroup Inc.
provided the financing. Adelphia filed for Chapter 11 bankruptcy protection June
The DIP financing will allow Adelphia to continue to
provide service as it reorganizes. It will also fund the maintenance and upgrade
of the MSO's cable systems.
In other Adelphia news, a hearing scheduled Friday morning at the U.S.
District Court in Manhattan, involving the five former Adelphia executives who
were arrested last month for allegedly looting the company, has been postponed
until Sept. 23.
Founder John Rigas, former executive vice president of operations Michael
Rigas, former chief financial officer Tim Rigas, former VP of finance Jim Brown
and former director of international reporting Michael Mulcahey were scheduled