Adelphia, lender agent settle Olympus bank claims payment dispute

By Caroline Salls

Pittsburgh, June 18 - Adelphia Communications Corp. and lender agent Deutsche Bank Trust Co. Americas submitted a proposed settlement of Deutsche's request for payment of the full amount of Olympus bank claims it is owed as a non-administrative agent under Adelphia's plan of reorganization, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, on May 2, Deutsche Bank asked the court to force Adelphia to pay it the $41 million of Olympus bank claims it is owed, arguing that Adelphia had refused to acknowledge the plan of reorganization's intent to treat the bank as a non-administrative agent in connection with its Olympus bank claims.

By failing to recognize Deutsche's proper classification, the lender agent said its bank claims were improperly reduced to $40.91 million from $41.14 million.

According to the proposed settlement, Deutsche Bank will be classified as a non-administrative agent under Adelphia's plan of reorganization.

As a result, Adelphia will pay the lender agent $209,166, representing the unpaid portion of its bank claims.

A hearing is scheduled for June 20.

Adelphia, a Greenwood Village, Colo.-based cable operator, emerged from bankruptcy on Feb. 13. Its Chapter 11 case number is 02-41729.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.