Small pieces of Adelphia Communications' Century Cable facility were said to have traded in the 88-89 range last week as the market waited out whether Adelphia would obtain a waiver on its bank debt after a grace period for the company to file its 10K expired on May 30. By Thursday afternoon the company had reportedly received a 14-day waiver.
The general consensus was that bank debt holders had no interest in forcing the company to file for bankruptcy and they would rather work through the company's current issues because the bank debt, held at the operating level, is backed by subscriber value. Both par and distressed desks are taking a look at the name. Many market players believe that at the end of the day it is a par name. But as one dealer noted "Who knows if this company will fall into Chapter 11."
The trading in Century paper was driven by big banks. Pressured by their credit committees to reduce exposure, one trader said. After a bank call earlier this week bids for the paper sunk once again into the mid-80s. Calls to the Adelphia spokeswoman were not returned by press time.