Adelphia Communications Corp.'s troubles continued to mount Monday after
Verizon Communications said it would terminate two system sales in California
Verizon spokesman Bill Kula said the regional telephone giant has terminated
the sales of its systems in Pinellas County, Fla., and Cerritos, Calif., with a
combined 67,000 subscribers. An early sale of Verizon systems to Adelphia -- in
Ventura County, Calif. -- has already closed and will not be affected.
Kula said the reason Verizon decided to terminate the agreement 'was based in
large part on the significant changes that have occurred with Adelphia.'
Under investigation by two federal courts and the Securities and Exchange
Commission, the MSO has been on the verge of bankruptcy since it defaulted on $7
billion in bank debt and missed interest payments on bonds totalling nearly $100
In a separate development, sources close to Adelphia said its expected
Chapter 11 bankruptcy filing -- widely anticipated for Monday -- will likely
take place later in the week.
Sources close to Adelphia said the company is still negotiating with its
lenders for a proposed $1.5 billion in debtor-in-possession financing, which is
holding up the bankruptcy filing.
'Discussions with the lenders are continuing, but negotiations are
complicated,' one source close to the company said.
According to sources, the banks -- including Citigroup Inc. and J.P. Morgan
Chase & Co. -- would lend Adelphia about $500 million in conjunction with
the bankruptcy filing.
The Coudersport, Pa.-based MSO would receive another $1 billion after meeting
certain milestones, including filing a business plan and bringing on additional