Adelphia Communications has been on the tip of investors' tongues this week as market players try to anticipate what the next step will be for the company. The company's Century Cable facility traded frequently in small pieces in the high 80s to low 90s. Dealers believe that Adelphia's holding company will file for bankruptcy, but are unsure what the individual operating companies will do. The company's bank debt is held at the operating level and bankers believe that at the end of the day the operating subsidiaries, with $5.5 - $5.8 million in subscribers, have enough value to cover the $8 billion in bank debt.
In addition, at least $25-30 million of XO Communications is believed to have traded in the high 40s this week with a $15-$20 million piece being sold by a bank in the 46-47 context. Carl Ichan has pulled his offer for the company off the table, according to reports, but some market players suggested that he will come back to ensure the value of his bond investments.