Adelphia, trust to receive payment under Motorola lawsuit settlement

By Caroline Salls

Pittsburgh, Nov. 25 - The Adelphia Recovery Trust and reorganized Adelphia Communications Corp. have entered into a conditional lawsuit settlement with Motorola, according to a company news release.

Claim transferees who hold portions of the Motorola claims against Adelphia are not parties to the settlement.

Under the terms of the settlement, Motorola will make a payment to the trust and Adelphia, and the portion of the Motorola claim assigned to the claim transferees will be deemed to be an allowed Adelphia trade claim.

The portion of the Motorola claim still held by Motorola will be waived in its entirety.

The settlement is subject to final, non-appealable bankruptcy court approval within 90 days.

According to the release, the trust, in its discretion, can retain some or all of its settlement proceeds for funding its operations.

The trust said no decision has been made on the amount or timing of any distributions to trust interest holders.

Adelphia can also keep some or all of its settlement proceeds for funding its operations with written approval of the trust.

Adelphia, a Greenwood Village, Colo.-based cable operator, emerged from bankruptcy on Feb. 13, 2007. Its Chapter 11 case number is 02-41729.

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