The bank debt under the Adelphia Communications umbrella was softer last week as sellers--including two Japanese banks--emerged. Traders also suggested that some firms were profit taking. The name was essentially about a point or two weaker across the cable company's various facilities. The Century Cable term loan "old" slipped to the 951/4-961/2 range from the 963/4-973/4 context and the Century-TCI paper fell from the 98 level to the 97 range. The one facility to hold its levels was the FrontierVision paper, which Mark It/LoanX quoted in the 99-993/4 range last week. One buysider explained that FrontierVision has a richer interest payout than the other facilities. An Adelphia spokesman declined to comment on the trading levels.
The ad hoc committee of non-agent secured lenders also filed a limited joinder to an objection that the agent banks had filed with the bankruptcy court opposing Adelphia's request to extend its period of exclusivity. The filing states that the company has used its exclusive right to "submit a patently unconfirmable" plan of reorganization. It also asserts that there are many legal problems with Adelphia's plan, including the failure to pay any post-effective date interest to "over-secured creditors," such as the members of the ad hoc committee. The cash that is set to be issued in fulfillment of those bank claims will be diverted to an escrow account until litigation against the banks is settled.