Senior Noteholders Want Adelphia To Pay Bank Debt

Law360, New York (September 25, 2006, 12:00 AM EDT) -- The senior noteholders of bankrupt Adelphia Communications Corp. filed an “emergency motion” last week, over concerns that interest accruing on the debtor’s bank debt is eating away at the estate.

The emergency motion seeks a court order authorizing and directing the debtors to pay “certain secured debt,” on which interest is accruing on a daily basis. The debt is thus cutting the amount available to satisfy unsecured claims.

The motion says that “in order to quell the unnecessary loss of value, the debtors must stop the...
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