Adelphia Banks Oppose Motion To Limit Defense Funds

Law360, New York (May 19, 2006, 12:00 AM EDT) -- Adelphia Communications Corp.’s banks and unsecured creditors are at fisticuffs over the flow of funds to lenders for defense expenses stemming from loans to the cable provider prior to its bankruptcy filing.

The unsecured creditors said in court papers that lenders have already taken approximately $100 million for indemnification claims and should not receive additional funds.

But in multiple objections filed Wednesday by the lenders, banks argued that the creditors’ request should be rejected because it fails to take into account the legal costs from lawsuits...
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