May 24, 2005
Willkie spearheads Bankruptcy Court approval process, overcoming 17 objections on behalf of Adelphia.
On May 20, the U.S. Bankruptcy Court for the Southern District of New York approved a landmark $715 million settlement between Willkie client Adelphia Communications Corp. and the SEC and Department of Justice. Willkie spearheaded the Bankruptcy Court approval process, overcoming 17 objections. Judge Robert E. Gerber ruled that the agreement was fair and equitable and in the best interests of the estate. The settlement provides for the creation of a restitution fund to compensate investors who suffered financial injury as a result of Adelphia’s bankruptcy. Adelphia resolved the Government’s criminal investigation pursuant to a non-prosecution agreement. Approval of the deal is needed for Adelphia to emerge from Chapter 11 protection and complete its $17.6 billion sale to Time Warner Inc. and Comcast Corp. Last year, the firm helped Adelphia secure an unprecedented $8.8 billion financing package to fund its Chapter 11 exit facility. Partner Marc Abrams led the Willkie team representing Adelphia.