Adelphia Ch. 11 Plan Trumps Equity Holders' Claims

Law360, New York (September 25, 2008, 12:00 AM EDT) -- An appeals court Wednesday rejected a bid by shareholders to challenge the Chapter 11 plan of Adelphia Communications Corp., holding that the bankruptcy court has authority to transfer the committee’s derivative claims to a litigation trust without its consent.

Judges Jon O. Newman and Sonia Sotomayer of the U.S. Court of Appeals for the Second Circuit affirmed the district court’s decision to deny the equity committee’s objection to Adelphia’s reorganization plan.

The committee had argued that the district court erred in dismissing its appeal of the...
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