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Creditors Finally Get Adelphia Money

More than a year after Adelphia Communications’ sale to Time Warner and Comcast was completed, creditors of the defunct cable operator will finally be getting their payday – more than $750 million in cash and Time Warner cable stock.

In a statement Friday, Adelphia said creditors will receive $531 million in cash and 6.45 million shares of Time Warner cable stock, with a “deemed value” of $244 million and a market value (based on its closing price on Aug. 16) of about $220 million. 

According to documents on Adelphia’s bankruptcy web site, holders of Adelphia 10.25% senior notes due June 15, 2011 will receive the most cash -- $103.08 for each $1,000 principal amount of debt – and 1.26 shares of TWC for every $1,000 owed. Holders of Adelphia 9.375% senior notes due Nov. 15, 2009 will get the most stock – 1.27 shares for each $1,000 in debt – and $104.30 in cash for every $1,000 owed.

Unsecured creditors and holders of trade claims would receive $76.74 in cash and 0.933 TWC shares for every $1,000 in debt. There are about 18 different classes of creditors listed on the site.

Time Warner Inc. – which owns 84% of Time Warner Cable – closed on its joint $17.6 billion purchase of Adelphia with Comcast in July 2006.