Adelphia Creditors Lose Battle Over $715M SEC Deal

Law360, New York (February 23, 2006, 12:00 AM EST) -- A federal judge in New York has rejected a bid by creditors of bankrupt cable company Adelphia Communications Corp. to tear up a $715 million settlement with the U.S. Securities and Exchange Commission penned after the company’s accounting scandal.

U.S. District Court Judge Lewis Kaplan upheld an earlier ruling by Bankruptcy Judge Robert Gerber, rejecting an assertion by creditors that the government had forced Adelphia into settling.

“What the appellants characterize as coercion was no different in principle than the pressure that leads the overwhelming majority...
To view the full article, register now.