Banks Appeal Adelphia Ruling On Grid Interest

Law360, New York (June 30, 2006, 12:00 AM EDT) -- Several banks that loaned Adelphia Communications Corp. a combined $6.8 billion before its bankruptcy filing have appealed a decision that allowed the cable company to wriggle out of paying $187 million in interest.

The banks, led by J.P. Morgan Chase & Co., have already collected $1.5 billion in interest on Adelphia’s loans, but claim that the cable company owes them “grid interest."

Grid interest is the interest that the banks would have collected if Adelphia’s dire financial circumstances had not been camouflaged.

Adelphia could owe as...
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