Adelphia To Shell Out Less Collateral

Law360, New York (August 21, 2006, 12:00 AM EDT) -- Adelphia Communications Corp. has reached an agreement with Travelers Casualty & Surety Co. of America that will significantly reduce the amount of collateral it must pay for bonds that back up its insurance policy.

In court documents filed Friday with the U.S. Bankruptcy Court in Manhattan, Adelphia said it wants to lower payments to Travelers from $61.2 million to $12.5 million.

Travelers has consented to the new indemnity contract because Time Warner Inc. and Comcast Corp., which last month bought Adelphia’s assets for $12.5 billion in...
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