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A federal bankruptcy court in New York confirmed Adelphia Communications Corp.’s Chapter 11 bankruptcy reorganization plan and endorsed a settlement granting nearly full recovery to creditors of Arahova Corp., one of Adelphia’s operating subsidiaries. Considered among the most complex Chapter 11 bankruptcy proceedings in U.S. history, the Adelphia matter was marked by intense, contentious litigation between Adelphia creditors and creditors of its operating subsidiaries, particularly Arahova Communications Inc., over the distribution of proceeds. White & Case was retained by the ad hoc committee of Arahova noteholders, one of the principal unsecured creditor groups in the case, in the spring of 2005, after positions taken by the debtors and other creditor groups threatened to reduce Arahova creditor recoveries from full par plus accrued interest to mere cents on the dollar, according to a statement that the firm released on April 24. As a direct result of the efforts of White & Case bankruptcy professionals, Arahova stakeholders received nearly a full recovery � an approximate $2 billion improvement in recoveries on a class basis, the statement said. “The case involved potential shifting of billions of dollars of value around the corporate enterprise,” said Miami-based partner Thomas E. Lauria, chairman of the firm’s global financial, restructuring and insolvency group, according to the statement. “Together with the ad hoc committee, our work was instrumental in negotiating a global settlement between and among a majority of all creditor constituencies fragmented throughout the entire Adelphia capital structure,” Lauria said. White & Case then took the lead role in developing the plan and structuring the ad hoc committee’s recovery, which included cash, stock and certificated litigation trust interests, freely tradable on a national exchange, in one of the largest litigation trust vehicles ever created in a Chapter 11 case, the firm’s statement said. Adelphia was the fifth largest cable company in the U.S. when internal corruption forced it to into bankruptcy in 2002. In July 2004, a federal jury in New York found Adelphia founder John J. Rigas and his son Timothy, the former chief financial officer, guilty of conspiring to steal millions of dollars from the cable television company. Both men are free pending their appeal. Neither Martin J. Bienenstock nor Brien S. Rosen of Weil Gotshal & Manges in New York who represented the Adelphi bondholder group, nor Mark Abrams of Wilkie Farr & Gallagher in New York who represented the debtors and debtors in possession, returned several calls for comment.

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