Adelphia Settles Banks' Grid Interest Claims For $42M

Law360, New York (March 1, 2011, 8:03 PM EST) -- Adelphia Communications Corp. asked a New York bankruptcy court Monday to greenlight a $42.5 million settlement to resolve so-called grid interest claims Citibank NA and Bank of Nova Scotia raised as administrative agents for two credit facilities.

The proposed settlement closes a long-running debate over $117 million in additional interest that the banks claimed their facilities would have collected absent the communication company's alleged failure to disclose its dire financial circumstances prior to its 2002 collapse, according to Adelphia's motion seeking approval and authorization of the...
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