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Adelphia Falls Again As Investors Fear Stock Delisting

15 May 2002

Approximately $15 million of Adelphia Communications' Century Cable bank debt traded in small pieces in the 91-92 range this week as investors fret over a possible delisting of the company's stock from the Nasdaq exchange. If the company's stock is delisted, Adelphia may have to deal with $1.4 billion in convertibles puttable to the company, traders said. Market players question whether the company has the liquidity to handle such an action. The hearing is scheduled for today.

As one of the most liquid of Adelphia's credit facilities, Century Cable's levels have fluctuated drastically since the company disclosed more than $2 billion of off-balance sheet debt during the last week of March. Levels for the Century Cable bank debt were in the 99 range, sunk as low as 90-92 after the company failed to file its 10K, and rose last week to the 94-96 range after the company reported that it would sell some of its cable assets.

Many dealers see value in the company's bank debt long-term, noting that the debt is held by the individual operating companies and not by the holding company. Even when fully drawn, the loans would still be over collateralized by the operating companies, one trader explained. Calls to Karen Chrosniak, Adelphia spokeswoman, were not returned by press time.

15 May 2002