Judge Rejects Adelphia's $32M Settlement

Law360, New York (March 7, 2007, 12:00 AM EST) -- A New York bankruptcy judge has denied approval of Adelphia Communications Corp.’s $32.5 million settlement with insurers, saying it would interfere with related litigation pending in another court.

The decision, issued Tuesday by Judge Robert E. Gerber in Manhattan Bankruptcy Court, struck down Adelphia’s deal to sell back about $50 million worth of liability insurance to insurers that have sued fallen Adelphia executives in another court.

The rejection was a boon to the cable company's former chief executive, John J. Rigas, as well as his sons...
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