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Adelphia Selects Advisers for Sale of Company
GREENWOOD VILLAGE, Colo. -- Adelphia Communications Corp. has selected UBS Investment Bank LLC and Allen & Company LLC as its financial advisers and Sullivan & Cromwell LLP as its legal advisors for the sale of the company, which is operating currently under Chapter 11 protection of the bankruptcy code."The selection of these outstanding advisers paves the way for a robust and organized sale process," says Bill Schleyer, chairman and chief executive officer. The selections are subject to review and approval by the United States Bankruptcy Court for the Southern District of New York.Adelphia is exploring the sale of the company in order to maximize the value for the bankruptcy estate.Adelphia founder John Rigas and his son Timothy were convicted July 8 of all 15 securities fraud charges filed against them for stealing from the cable company and deceiving investors about the company's $2.3 billion debt. The founder's son Michael was acquitted of conspiracy charges, and the jury could not come to agreement on most of the remaining charges.Former Adelphia assistant treasurer Michael Mulcahey, also charged with 15 counts, was found not guilty of conspiracy and securities fraud."Although the selection [of advisers] was slowed somewhat by the constraints of the bankruptcy process, the company has been working diligently for the past several months preparing all the necessary information and documentation to facilitate the sale and accelerate the auction process," says Schleyer. "Under the leadership of this advisory group, we will continue to prepare the company to be sold. Once court approval for their retention is obtained, we will launch the official sale process."The New York-based law firm Willkie Farr & Gallagher LLP will continue as Adelphia's lead legal counsel for the Chapter 11 Bankruptcy process. Lazard Freres & Co. LLC will continue to provide financial advice to the company on its potential reorganization.Adelphia Communications Corp. is the fifth-largest cable television company in the country, serving customers in 30 states and Puerto Rico. Adelphia also offers analog and digital video services, high-speed Internet access and other advanced services over its broadband networks."