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Enron or WorldCom it ain’t, but Adelphia Communications Corporation’s road to Chapter 11 has had its own unique drama. After weeks of trying to stave off the inevitable, the embattled company, under investigation for accounting irregularities, filed for bankruptcy protection on June 25 in U.S. bankruptcy court in New York. The country’s sixth-largest cable operator listed more than $24 billion in assets and more than $18 billion in liabilities (excluding off-balance sheet obligations). Adelphia’s financial picture started to go fuzzy in March, when the company disclosed that its controlling investors, the Rigas family, had borrowed $2.3 billion that should have been included on the company’s balance sheet (that figure was later revised to $3.1 billion). A flurry of shareholder suits and an SEC investigation ensued. (Adelphia has hired Boies, Schiller & Flexner to handle various litigation and investigations. Fried, Frank, Harris, Shriver & Jacobson assists on those matters, and also advises Adelphia on securities laws and corporate governance issues. Covington & Burling was hired by the special committee of the board of directors to conduct an investigation into certain transactions.) In May the Rigas family relinquished control of its board seats and management positions. In July family members and executives were arrested on charges of massive financial fraud. (All have said through their lawyers that they are not guilty.) Adelphia has secured $1.5 billion of debtor-in-possession financing, which will allow the company to continue operating as it reorganizes. For debtor Adelphia Communications Corporation (Coudersport, Pennsylvania) In-house: General counsel Randall Fisher. Willkie Farr & Gallagher (New York): Bankruptcy: Marc Abrams, Shelley Chapman, Paul Shalhoub, Myron Trepper, and associates Morris Massel, Roger Schwartz, Rachel Strickland, and Anthony Vassallo. Corporate: Cornelius Finnegan III, Maurice Lefkort, Laurence Weltman, and associates Aaron Katzel, Jeanine Salvatore, and Holly Kennard Youngwood. Litigation: Roger Netzer and Brian O’Connor. Willkie was originally retained by Adelphia when the company provided debtor-in-possession financing to Adelphia Business Solutions, Inc., which was spun off from Adelphia in January. ABS, which filed for bankruptcy in March, is represented by Weil, Gotshal & Manges. For The Official Committee of Unsecured Creditors Kasowitz, Benson, Torres & Friedman (New York): Richard Casher, David Friedman, David Rosner, Adam Shiff, and associates Athena Foley, Andrew Glenn, Lisa Laukitis, Alan Lungen, and Daniel Zinman. The firm represented many of Adelphia’s largest bondholders. For prepetition agent Citibank, N.A. (Pittsford, New York) Milbank, Tweed, Hadley & McCloy (New York): Financial restructuring: Luc Despins and associate Craig Druehl. Banking: Warren Cooke, Eric Moser, and associate Clifton Prabhu. For prepetition agent J.P. Morgan Chase & Co. (New York) Milbank, Tweed, Hadley & McCloy (New York): Financial restructuring: Dennis Dunne and associate James Tecce. Banking: Richard Wight and associate Albert Pisa. For prepetition agent The Bank of Nova Scotia (Toronto) Luskin, Stern & Eisler (New York): Michael Luskin, Richard Stern, and associates Stephen Angelson and Trevor Hoffman. For prepetition agent Bank of America Corporation (Charlotte, North Carolina) Haynes and Boone (Dallas): Transactional: Sue Murphy and associate M. Kelly Lanning Turner. Bankruptcy: John Penn, Robin Phelan, and associate Ian Peck. For prepetition agent Wachovia Corporation (Charlotte, North Carolina) Simpson Thacher & Bartlett (New York): James Buresh, Peter Pantaleo, and associates Paul Christenson and Elisha Graff. For prepetition agent Bank of Montreal (Montreal) Mayer, Brown, Rowe & Maw (Chicago): Andrew Mattei, J. Robert Stoll, and associates Michelle Holl, Jason Kanner, and Kenneth Noble. (All are in New York except Stoll.) For the co-lead arrangers of Adelphia’s debtor-in-possession financing, J.P. Morgan Chase & Co. and Citigroup Inc. (New York) Davis Polk & Wardwell (New York): Donald Bernstein, Tiziana Tabucchi, and associates Julie Anderson, Iris Chiu, Simon Cresswell, Aly El-Hamamsy, and Adam Furber. outlook Manhattan federal district court judge Robert Gerber has approved an initial $500 million of debtor-in-possession financing. At press time, lawyers for the committee for unsecured creditors had made objections to additional disbursements, and a hearing to address the objections was scheduled for August 22. -Andrew Longstreth

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