On Monday, U.S. District Court Judge Shira Scheindlin lifted a hold on a bankruptcy court order approving Adelphia Communications’ Chapter 11 reorganization plan, thereby enabling Time Warner Cable (TWC) to proceed Tuesday with plans to transform itself into a publicly-traded company. Although U.S. Bankruptcy Court Judge Robert Gerber signed off on Adelphia’s reorganization plan on January 3, Scheindlin—at the behest of bondholders who objected to the plan—had blocked implementation pending review of the bondholders’ claims. After the noteholders declined to post a $1.3 billion bond required by the court, however, Scheindlin lifted the hold on Gerber’s order, allowing Adelphia to distribute 156 million shares of TWC stock that Adelphia received in exchange for the sale of its assets to Time Warner and Comcast last year. Upon receiving news that Adelphia’s reorganization plan had gone into effect, Time Warner announced that TWC had become a publicly-traded company. TWC, the second-largest cable provider in the U.S., will remain a subsidiary of Time Warner. Shares in TWC will be listed on the New York Stock Exchange as early as March 1 and will trade under the “TWC” symbol. Analysts say the timing of TWC’s action is ideal, as cable stocks have begun to surge with the successful introduction of triple-play packages, consisting of voice, video and broadband services, by many cable providers. Praising TWC’s birth as a publicly-traded company, Time Warner CEO Dick Parsons said TWC “is positioned to compete successfully in the fast-growing cable sector and to increase value for the shareholders of Time Warner and [TWC].”
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Judge allows Adelphia reorganization to proceed as Time Warner Cable goes public
- Paul, Weiss, Rifkind, Wharton & Garrison LLP
- February 16 2007
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