Cable names were among the popular credits sought after by investors last week, with names like Adelphia Communications Corp., Charter Communications and RCN Corp. climbing back up to levels virtually unseen since before Adelphia's scandal and a period of tough economic times rocked the industry. Traders said Adelphia's Century Cable term loans traded in the 951/2-97 context ticking up from the 91-93 range earlier in the week. Charter's term loan, which had been trading solidly in the 961/2-971/2 range over the last couple months, changed hands in the 99 context last week. RCN bank debt was also seen trading around the 96-97 level.
Two years ago, Adelphia and Charter loans were among the most liquid, par names with Adelphia bank debt enjoying levels in the 993/8-997/8 range and Charter in the 987/8 context (LMW, 1/28/2002).
Adelphia is still wading through its bankruptcy process. The company has not set a specific date for emergence, but the target is to emerge in 2004, noted a company spokesman. The company will seek to operate independently with its core assets in tact. The company has completed the reconstruction of five years of financial statements and the auditors are currently reviewing those statements, the spokesman said. The company is working on its valuation process to determine the enterprise value of Adelphia going forward, he explained. The valuation will become the basis for its reorganization plan.