Saybrook Capital Advising Ad Hoc Committee of Adelphia Preferred Shareholders.
Business Editors
A number of significant institutional and individual holders of Preferred Shares issued by Adelphia Communications Corporation have formed an Ad Hoc Committee to represent their interests in connection with Adelphia's recent filing under the Chapter 11 Bankruptcy Code. "Based on our analysis, we believe the Preferred Shares of Adelphia have substantial value and we expect to play a constructive role in the reorganization," said Jonathan Rosenthal, a partner of Saybrook Capital LLC, the financial advisor assisting the Ad Hoc Committee. The bankruptcy petition filed by Adelphia lists total assets of more than $24.4 billion and total liabilities of $18.6 billion, showing a book solvency of approximately $5.8 billion.
In cases of Adelphia's size, complexity and apparent solvency, it is not uncommon for the equity holders to participate in the process of reorganization, according to Rosenthal. Adelphia's preferred shareholders are owed approximately $1.6 billion. James Conlan, a bankruptcy partner with Sidley, Austin, Brown and Wood, who has also been retained by the Ad Hoc Committee, indicated, "We plan on submitting a request on behalf of the Ad Hoc members to the U.S. Trustee to appoint an Official Equity Committee in the case."
There will be a conference call for all interested holders of Adelphia Preferred Shares on Friday, June 28, at 2:30 PM ET to discuss the Ad Hoc Committee's activities in connection with Adelphia's bankruptcy case. Holders of Preferred Shares in Adelphia who wish to participate in the Committee activities may contact Nancy McWethy Lusk at (312) 456-4004 to obtain call-in information.
Saybrook Capital, LLC is an investment bank with expertise in real estate and tax-exempt finance, financial advisory services, fund management and corporate restructurings. Saybrook is currently advising the Official Committee of Unsecured Creditors in the Pacific Gas & Electric Company bankruptcy, the largest utility bankruptcy in history. Saybrook also represented the Official Creditor Committee of the Orange County Investment Pool in Orange County bankruptcy, the largest Chapter 9 bankruptcy in history.
