C-COR.net Corp. rode the bounce it received after the cable-equipment vendor said it would sell virtually all debt claims for money owed by Adelphia Communications Corp. The stock price rose 14% ($1.39) between Oct. 31 and Nov. 5, to $11.25.
C-COR.net would not identify the buyer, but said it would receive an initial cash payment of $21 million, with additional amounts held in escrow until certain contingencies are met.
Adelphia owed C-COR.net about $44.9 million when the MSO filed for bankruptcy protection in June 2002. In its annual report to the Securities and Exchange Commission in September, C-COR.net said it had filed unsecured claims with the bankruptcy court regarding accounts receivable that were previously written off in 2002. Those debts were written off because of "management's assessment that these accounts receivable were likely not recoverable."
Adelphia had been C-COR.net's largest customer, generating about 30% of total revenue in 2002. In 2003, C-COR.net's largest customers were Comcast Corp. and Time Warner Cable, generating 19% and 17% of total revenue.