Balances by
Legal Entity as of June 30, 2002 as Restated in May 2005
Summary of Intercompany Balances
Dollars in Thousands
Legal Entity
Gross
Receivables
06/30/02
Gross
(Payables)
06/30/02
Net
06/30/02
Adelphia
Cablevision Corp.
$
—
$
(330,953
)
$
(330,953
)
Adelphia
Cablevision of Boca Raton, LLC
$
17,663
$
—
$
17,663
Adelphia
Cablevision of Inland Empire, LLC
$
3,660
$
—
$
3,660
Adelphia
Cablevision of Newport Beach, LLC
$
7,664
$
—
$
7,664
Adelphia
Cablevision of Orange County II, LLC
$
5,449
$
—
$
5,449
Adelphia
Cablevision of Orange County, LLC
$
13,380
$
—
$
13,380
Adelphia
Cablevision of Seal Beach, LLC
$
4,133
$
—
$
4,133
Adelphia Cablevision
of West Palm Beach III, LLC
$
844
$
—
$
844
Adelphia
Cablevision of West Palm Beach IV, LLC
$
845
$
—
$
845
Adelphia
Cablevision of West Palm Beach V, LLC
$
1,577
$
—
$
1,577
Adelphia
Cleveland, LLC
$
—
$
(826,671
)
$
(826,671
)
Adelphia
Communications of California II, LLC
$
8,374
$
—
$
8,374
Adelphia
Communications of California, LLC
$
—
$
(1,967
)
$
(1,967
)
Adelphia of
the Midwest, Inc.
$
—
$
(896,339
)
$
(896,339
)
Adelphia
Prestige Cablevision, LLC
$
—
$
(819,042
)
$
(819,042
)
Badger
Holding Corp
$
—
$
(1,464
)
$
(1,464
)
Blacksburg/Salem
Cablevision, Inc.
$
—
$
(75,029
)
$
(75,029
)
Brazas
Communications, Inc.
$
—
$
(20,468
)
$
(20,468
)
Century
Berkshire Cable Corp
$
—
$
(6,163
)
$
(6,163
)
Century
Cable Holding Corp
$
—
$
(3,456,662
)
$
(3,456,662
)
Century
Cable Holdings, LLC
$
4,155,888
$
—
$
4,155,888
Century
Colorado Springs Partnership
$
—
$
(14,717
)
$
(14,717
)
Century
Indiana Corp
$
—
$
(67,055
)
$
(67,055
)
Century
Island Associates, Inc.
$
—
$
(1,940
)
$
(1,940
)
Century
Island Cable Television Corp
$
—
$
(2,616
)
$
(2,616
)
Century
Mendocino Cable Television
$
105,913
$
—
$
105,913
Century
Mountain Corp
$
6,349
$
—
$
6,349
Century New
Mexico Cable Television, Inc.
$
—
$
(246,359
)
$
(246,359
)
Century Ohio
Cable Televisiion Corp
$
—
$
(14,778
)
$
(14,778
)
Century
Southwest Colorado Cable Television Corp
$
—
$
(13,221
)
$
(13,221
)
Century
Trinidad Cable Television Corp
$
—
$
(1,199
)
$
(1,199
)
Century
Virginia Corp
$
—
$
(15,638
)
$
(15,638
)
Century
Warrick Cable Corp.
$
—
$
(11,139
)
$
(11,139
)
Century
Wyoming Cable Television Corp
$
—
$
(7,285
)
$
(7,285
)
Clear
Cablevision, Inc.
$
32,690
$
—
$
32,690
E &
E Cable Service, Inc.
$
6,907
$
—
$
6,907
Eastern
Virginia Cablevision, LP
$
—
$
(30,538
)
$
(30,538
)
Ft Myers
Acquisition LP
$
—
$
(57,149
)
$
(57,149
)
Ft Myers
Cablevision, LLC
$
120,594
$
—
$
120,594
Grafton
Cable Company
$
2,251
$
—
$
2,251
Harron
Cablevision of New Hampshire
$
25,883
$
—
$
25,883
Huntington
CATV, Inc.
$
225
$
—
$
225
Louisa
Cablevision, Inc.
$
—
$
(1,124
)
$
(1,124
)
Manchester
Cablevision, Inc.
$
—
$
(200
)
$
(200
)
Martha’s
Vineyard Cablevision, LP
$
—
$
(7,036
)
$
(7,036
)
Mickelson
Media, Inc.
$
27,205
$
—
$
27,205
Owensboro on
the Air, Inc.
$
—
$
(36,031
)
$
(36,031
)
Paragon
Cable Television, Inc.
$
—
$
(8,070
)
$
(8,070
)
S/T Cable Corporation
$
—
$
(12,275
)
$
(12,275
)
Scranton
Cablevision, Inc.
$
—
$
(209,293
)
$
(209,293
)
Sentinel
Communications of Muncie, Indiana, Inc.
$
—
$
(1,976
)
$
(1,976
)
Southwest
Colorado Cable Inc.
$
—
$
(3,331
)
$
(3,331
)
Star Cable Inc.
$
—
$
(1
)
$
(1
)
Tele-Media
Company of Tri-States, LP
$
—
$
(16,003
)
$
(16,003
)
TMC Holdings
Corp
$
—
$
(80,716
)
$
(80,716
)
Tri-States,
LLC
$
4,952
$
—
$
4,952
Wellsville
Cablevision, LLC
$
—
$
(28,930
)
$
(28,930
)
Westover TV
Cable Cable Co., Inc.
$
3,684
$
—
$
3,684
Total
Century Silo Adelphia
$
4,556,131
$
(7,323,376
)
$
(2,767,246
)
Cablevision
Business Services, Inc.
$
295
$
—
$
295
Desert Hot
Springs Cablevision, Inc.
$
—
$
(5,575
)
$
(5,575
)
Highland
Carlsbad Operating Subsidiary, Inc.
$
8,459
$
—
$
8,459
Highland
Prestige Georgia, Inc.
$
468,931
$
—
$
468,931
Total
Century Silo RFP
$
477,685
$
(5,575
)
$
472,110
Century
Co-Borrowing Interest Elimination
$
124,142
$
—
$
124,142
Total
Century Silo W/RFP
$
5,157,958
$
(7,328,951
)
$
(2,170,993
)
Century-TCI
California Communications, LP
$
—
$
(141,741
)
$
(141,741
)
Century-TCI
California, LP
$
—
$
(62,415
)
$
(62,415
)
All balances above are unaudited and subject to change.
Please review the May 2005 Global Notes
1
Adelphia Communications Corporation, et al.
Balances by
Legal Entity as of June 30, 2002 as Restated in May 2005
Summary of Intercompany Balances
Dollars in Thousands
Legal Entity
Gross
Receivables
06/30/02
Gross
(Payables)
06/30/02
Net
06/30/02
Century-TCI
Holdings, LLC
$
—
$
(1
)
$
(1
)
Total
Century-TCI Silo
$
—
$
(204,158
)
$
(204,158
)
Adelphia
Cablevision of Santa Ana, LLC
$
—
$
(5,166
)
$
(5,166
)
Adelphia
Cablevision of Simi Valley, LLC
$
514
$
—
$
514
Adelphia
Central Pennsylvania, LLC
$
—
$
(307,304
)
$
(307,304
)
Eastern
Virginia Cablevision Holdings, LLC
$
87
$
—
$
87
National
Cable Acquisition Associates, LP
$
—
$
(260,200
)
$
(260,200
)
Olympus
Communications, LP
$
504,572
$
—
$
504,572
Southwest
Virginia Cable, Inc.
$
—
$
(62,068
)
$
(62,068
)
SVHH Cable
Acquisition, LP
$
—
$
(25,249
)
$
(25,249
)
Tele-Media
Company of Hopewell-Prince George
$
—
$
(11,423
)
$
(11,423
)
Tele-Media
Investment Partnership, LP
$
—
$
(43,545
)
$
(43,545
)
UCA LLC
$
94,165
$
—
$
94,165
Van Buren
County Cablevision, Inc.
$
—
$
(13,056
)
$
(13,056
)
Total UCA
Silo Adelphia
$
599,338
$
(728,011
)
$
(128,674
)
Hilton Head
Communications, Inc.
$
315,244
$
—
$
315,244
Ionian
Communications, LP
$
28,717
$
—
$
28,717
Total UCA
Silo RFP
$
343,960
$
—
$
343,960
UCA
Co-Borrowing Interest Elimination
$
26,543
$
—
$
26,543
Total UCA
Silo W/RFP
$
969,841
$
(728,011
)
$
241,830
Parnassos
Communications, LP
$
—
$
(63,730
)
$
(63,730
)
Parnassos,
LP
$
—
$
(24,886
)
$
(24,886
)
Total
Parnassos Silo
$
—
$
(88,616
)
$
(88,616
)
Adelphia
Communications of California III, LLC
$
1,941
$
—
$
1,941
FOP Indiana,
LP
$
2,849
$
—
$
2,849
FrontierVision
Access Partners, LLC
$
—
$
(60,675
)
$
(60,675
)
FrontierVision
Cable New England, Inc.
$
—
$
(55,233
)
$
(55,233
)
FrontierVision
Capital Corporation
$
—
$
(0
)
$
(0
)
FrontierVision
Holdings Capital Corporation
$
1
$
—
$
1
FrontierVision
Holdings Capital II Corporation
$
—
$
(0
)
$
(0
)
FrontierVision
Holdings, LP.
$
—
$
(20,016
)
$
(20,016
)
FrontierVision
Operating Partners, LLC
$
—
$
(2
)
$
(2
)
FrontierVision
Operating Partners, LP
$
—
$
(36,778
)
$
(36,778
)
Maine
InternetWorks, Inc.
$
167
$
—
$
167
Total
Frontiervision Silo
$
4,958
$
(172,705
)
$
(167,747
)
ACC Cable
Communications FL-VA, LLC
$
—
$
(243,436
)
$
(243,436
)
Adelphia
Cable Partners, LP
$
—
$
(21,900
)
$
(21,900
)
Adelphia
Cablevision Associates, LP
$
—
$
(2,373
)
$
(2,373
)
Adelphia
Cablevision of New York, Inc.
$
—
$
(140,802
)
$
(140,802
)
Adelphia
Company of Western Connecticut
$
—
$
(110,724
)
$
(110,724
)
Adelphia GS
Cable, LLC
$
—
$
(402,123
)
$
(402,123
)
Arahova
Holdings, LLC
$
—
$
(7,590
)
$
(7,590
)
Better TV
Inc. of Bennington
$
—
$
(10,601
)
$
(10,601
)
Cable Sentry
Corporation
$
1
$
—
$
1
CDA Cable, Inc.
$
—
$
(5,317
)
$
(5,317
)
Century
Alabama Corp
$
—
$
(5,425
)
$
(5,425
)
Century
Cable Management Corp
$
2,067
$
—
$
2,067
Century
Carolina Corp
$
7,340
$
—
$
7,340
Century
Cullman Corp
$
—
$
(3,484
)
$
(3,484
)
Century
Enterprise Cable Corp
$
—
$
(968
)
$
(968
)
Century
Huntington Company
$
—
$
(14,320
)
$
(14,320
)
Century
Kansas Cable Television Corp
$
2,080
$
—
$
2,080
Century
Lykens Cable Corp
$
—
$
(2,684
)
$
(2,684
)
Century
Mississippi Corp
$
—
$
(12,388
)
$
(12,388
)
Century
Norwich Corp
$
—
$
(13,380
)
$
(13,380
)
Century
Shasta Cable Television Corp
$
—
$
(13,627
)
$
(13,627
)
Century
Washington Cable Television, Inc.
$
—
$
(71,508
)
$
(71,508
)
Chelsea
Communications, Inc.
$
17,190
$
—
$
17,190
Chelsea
Communications, LLC
$
—
$
(162,449
)
$
(162,449
)
Cowlitz
Cablevision Corp
$
17,796
$
—
$
17,796
GS Cable,
LLC
$
—
$
(372,687
)
$
(372,687
)
Imperial
Valley Cablevision, Inc.
$
21,884
$
—
$
21,884
Kalamazoo
County Cablevision, Inc.
$
—
$
(1,916
)
$
(1,916
)
Key Biscayne
Cablevision
$
—
$
(5,443
)
$
(5,443
)
Kootenai
Cable, Inc.
$
—
$
(27,786
)
$
(27,786
)
Lake
Champlain Cable Television Corp
$
2,744
$
—
$
2,744
Mickelson
Media of Florida, Inc.
$
—
$
(23,753
)
$
(23,753
)
Mountain
Cable Communications Corp
$
—
$
(23,998
)
$
(23,998
)
All balances above are unaudited and subject to change.
Please review the May 2005 Global Notes
2
Adelphia Communications Corporation, et al.
Balances by
Legal Entity as of June 30, 2002 as Restated in May 2005
Summary of Intercompany Balances
Dollars in Thousands
Legal Entity
Gross
Receivables
06/30/02
Gross
(Payables)
06/30/02
Net
06/30/02
Mountain
Cable Company, LP
$
—
$
(189,474
)
$
(189,474
)
Multi-Channel
TV Cable Company
$
—
$
(167,601
)
$
(167,601
)
Olympus
Cable Holdings, LLC
$
1,238,243
$
—
$
1,238,243
Olympus
Capital Corp.
$
57,872
$
—
$
57,872
Pericles
Communications Corporation
$
—
$
(80,965
)
$
(80,965
)
Pullman TV
Cable Co., Inc.
$
2,973
$
—
$
2,973
Rentavision
of Brunswick, Inc.
$
3,472
$
—
$
3,472
Richmond
Cable Television Corp
$
—
$
(2,967
)
$
(2,967
)
Southeast
Florida Cable, Inc.
$
—
$
(532,317
)
$
(532,317
)
Starpoint,
Limited Partnership
$
—
$
(3,151
)
$
(3,151
)
Telesat
Acquisition, LLC
$
—
$
(82,185
)
$
(82,185
)
Three Rivers
Cable Associates, LP
$
—
$
(40,854
)
$
(40,854
)
Timotheos
Communications, LP
$
513,482
$
—
$
513,482
Valley Video, Inc.
$
351
$
—
$
351
Warrick
Indiana, LP
$
—
$
(96
)
$
(96
)
West Boca
Acquisition Limited Partnership
$
—
$
(90,107
)
$
(90,107
)
Wilderness
Cable Company
$
564
$
—
$
564
Young’s
Cable TV Corp
$
10,782
$
—
$
10,782
Yuma
Cablevision, Inc.
$
30,366
$
—
$
30,366
Total
Olympus Silo Adelphia
$
1,929,205
$
(2,890,397
)
$
(961,192
)
Adelphia
Cablevision Associates of Radnor, LP
$
1,544
$
—
$
1,544
Adelphia
Cablevision of West Palm Beach II, LLC
$
6,063
$
—
$
6,063
Adelphia
Cablevision of West Palm Beach, LLC
$
13,097
$
—
$
13,097
Bucktail
Broadcasting Corporation
$
—
$
(3,089
)
$
(3,089
)
Coudersport
Television Cable
$
—
$
(2,286
)
$
(2,286
)
Henderson
Community Antenna Television, Inc.
$
—
$
(10,594
)
$
(10,594
)
Highland
Video Associates, LP
$
921,241
$
—
$
921,241
Montgomery
Cablevision Associates, LP
$
—
$
(665
)
$
(665
)
RFP
Eliminations
$
—
$
—
$
—
Total
Olympus Silo RFP
$
941,945
$
(16,634
)
$
925,311
Olympus
Co-Borrowing Interest Elimination
$
12,500
$
—
$
12,500
Total
Olympus Silo W/RFP
$
2,883,651
$
(2,907,032
)
$
(23,381
)
ACC
Investment Holdings, Inc.
$
16,883,445
$
—
$
16,883,445
ACC
Telecommunications LLC
$
—
$
(254,666
)
$
(254,666
)
ACC
Telecommunications of Virginia LLC
$
—
$
(42,604
)
$
(42,604
)
Adelphia
Cablevision, LLC
$
—
$
(2,948,599
)
$
(2,948,599
)
Adelphia
Communications International, Inc.
$
—
$
(0
)
$
(0
)
Adelphia
Harbor Center Holdings LLC
$
—
$
(1,050
)
$
(1,050
)
Adelphia
International II, LLC
$
—
$
(19,029)
$
(19,029)
Adelphia
International III, LLC
$
—
$
(54,865)
$
(54,865)
Adelphia
Mobile Phones, Inc.
$
—
$
(30)
$
(30)
Adelphia
Telecommunications, Inc.
$
—
$
(3,925
)
$
(3,925
)
Empire
Sports Network, LP
$
—
$
(12,024
)
$
(12,024
)
Mercury
Communications, Inc.
$
—
$
(3,231
)
$
(3,231
)
Page Time, Inc.
$
—
$
(12,681
)
$
(12,681
)
Sabres, Inc.
$
48,363
$
—
$
48,363
The Golf
Club at Wending Creek Farms, LLC
$
—
$
(25,066
)
$
(25,066
)
US
Tele-Media Investment Company
$
—
$
(407
)
$
(407
)
Total Silo
7A Adelphia
$
16,931,808
$
(3,378,179
)
$
13,553,629
Silo 7A
Co-Borrowing Interest Elimination
$
—
$
(163,186
)
$
(163,186
)
Total Silo
7A Adelphia W/Elimn.
$
16,931,808
$
(3,541,365
)
$
13,390,443
Arahova
Communications, Inc.
$
1,443,549
$
—
$
1,443,549
Century
Advertising, Inc.
$
—
$
(2,390
)
$
(2,390
)
Century
Australia Communications Corp
$
—
$
(71,597
)
$
(71,597
)
Century
Colorado Springs Corp
$
—
$
(643
)
$
(643
)
Century
Communications Corp
$
—
$
(717,357
)
$
(717,357
)
Century
Exchange, LLC
$
—
$
(1
)
$
(1
)
Century
Investment Holding Corp
$
—
$
(15,091
)
$
(15,091
)
Century
Investors, Inc.
$
—
$
(7,270
)
$
(7,270
)
Century
Oregon Cable Corp
$
—
$
(3,353
)
$
(3,353
)
Century
Programming, Inc.
$
—
$
(170
)
$
(170
)
Century
Voice and Data Communications, Inc.
$
—
$
(3,181
)
$
(3,181
)
FAE Cable
Management Corp
$
4,760
$
—
$
4,760
Owensboro-Brunswick, Inc.
$
—
$
(28,273
)
$
(28,273
)
Total Silo
7B Arahova
$
1,448,309
$
(849,327
)
$
598,983
Adelphia
Cablevision of the Kennebunks, LLC
$
—
$
(3,279
)
$
(3,279
)
Adelphia
California Cablevision, LLC
$
—
$
(33,958
)
$
(33,958
)
Adelphia
Telecommunications of Florida, Inc.
$
—
$
(183
)
$
(183
)
All balances above are unaudited and subject to change.
Please review the May 2005 Global Notes
3
Adelphia Communications Corporation, et al.
Balances by
Legal Entity as of June 30, 2002 as Restated in May 2005
Summary of Intercompany Balances
Dollars in Thousands
Legal Entity
Gross
Receivables
06/30/02
Gross
(Payables)
06/30/02
Net
06/30/02
Buenavision
Telecommunications, Inc.
$
—
$
(45,383
)
$
(45,383
)
Century
Cablevision Holdings, LLC
$
—
$
(254,070
)
$
(254,070
)
Global
Acquisition Partners, LP
$
—
$
(50,523
)
$
(50,523
)
Global Cablevision
II, LLC
$
—
$
(1,953
)
$
(1,953
)
Monument
Colorado Cablevision, Inc.
$
—
$
(16,644
)
$
(16,644
)
Robinson/Plum
Cablevision, LP
$
—
$
(5,119
)
$
(5,119
)
Total Silo
7C Olympus
$
—
$
(411,111
)
$
(411,111
)
ELIMINATIONS
$
33,133
$
—
$
33,133
ACC
Operations, Inc.
$
—
$
(10,598,437
)
$
(10,598,437
)
Adelphia
Communications Corp
$
14,577
$
—
$
14,577
Adelphia
Western New York Holdings, LLC
$
68,260
$
—
$
68,260
FrontierVision
Holdings, LLC
$
—
$
(0
)
$
(0
)
FrontierVision
Partners, LP
$
—
$
(682,336
)
$
(682,336
)
Montgomery
Cablevision, Inc.
$
1,304
$
—
$
1,304
Main
Security Surveillance, Inc.
$
—
$
(1,751
)
$
(1,751
)
Praxis
Capital Ventures, LP
$
1
$
—
$
1
STV
Communications, Inc.
$
—
$
(0
)
$
(0
)
Total
Holding Co. Guar., Non-Filers & Elimination Centers
$
117,274
$
(11,282,524
)
$
(11,165,250
)
Grand Total
$
27,513,800
$
(27,513,800
)
$
(0
)
All balances above are unaudited and subject to change.
Please review the May 2005 Global Notes
4
These Global Notes (the “Global Notes”) Regarding Debtors’ May 2005
Amended Schedules of Liabilities comprise an integral part of the May 2005
Amended Schedules of Liabilities and should be referred to and considered in
connection with any review of them
.
1.
The May 2005 Supplemental Schedule of
Liabilities (the “Bankruptcy Schedules”) of Adelphia Communications Corporation
(“Adelphia”) and its affiliated debtors in the above-captioned, jointly
administered Chapter 11 cases (collectively, the “Debtors”) have been prepared
pursuant to section 521 of title 11 of the United States Code (the “Bankruptcy
Code”) and Rule 1007 of the Federal Rules of Bankruptcy Procedure by
management of the Debtors and are unaudited.
The
information provided herein is as of the close of business on June 30,
2002 for all of the Debtors. The financial affairs and
businesses of the Debtors are extremely large and complex. While the Debtors’ management has made every
reasonable effort to ensure that the Bankruptcy Schedules are accurate and
complete, based upon information that was available to them at the time of
preparation, the subsequent receipt of information and/or further review and
analysis of the Debtors’ books and records may result in material changes to
financial data and other information contained in the Bankruptcy
Schedules. Inadvertent errors or
omissions may exist, however.
2.
Prior to the commencement of
these chapter 11 cases, the Debtors participated in a centralized cash
management system through which payments to third-party creditors generally
were made by Adelphia Cablevision, LLC (“Adelphia Cablevision”) on behalf of
the other Debtors. The cash management
system consisted of approximately seven bank accounts, (i) all of which
were reported on the Debtors’ books and records as being owned by Adelphia
Cablevision, and (ii) all but one of which were registered with the
applicable bank in the name of Adelphia Cablevision. The one account that was not in the name of
Adelphia Cablevision was in the name of National Cable Acquisition Associates,
L.P. and was a lockbox account. Payments
to third parties generally were recorded on the books and records of the entity
on behalf of which the payment was made.
Cash receipts generally were collected by Adelphia Cablevision. Pursuant to policies established in
connection with the reconstruction of the Debtors’ books and records, unless
evidenced by documentation between two Debtors, all intercompany balances are
deemed to be between a Debtor and Adelphia Cablevision. All such intercompany transfers between a
Debtor on the one hand, and Adelphia Cablevision on the other hand, have been
netted in the Intercompany Schedule, creating either a net payable or
receivable intercompany balance between each such Debtor and Adelphia
Cablevision.
3.
Beginning in 1992, certain of
the Debtors purchased controlling equity interests in certain cable systems
owned by or affiliated with Tele-Media Corporation of Delaware (“TMCD”). The entities, which are Debtors in these
cases, are: Adelphia Company of Western Connecticut (also known as Tele-Media
Company of Western Connecticut), TMC Holdings Corp., CMA Cablevision Associates
VII, L.P., CMA Cablevision Associates XI, L.P., Tele-Media Company Of
Tri-States, L.P., Eastern
Virginia Cablevision, L.P., Eastern Virginia Cablevision Holdings, LLC,
Tele-Media Investment Partnership, L.P., and Tele-Media Company of
Hopewell-Prince George (collectively, the “Tele-Media Debtors”). Pursuant to certain agreements, through the
Petition Date,
i
These Global Notes (the “Global
Notes”) Regarding Debtors’ May 2005 Amended Schedules of Liabilities
comprise an integral part of the May 2005 Amended Schedules of Liabilities
and should be referred to and considered in connection with any review of them
.
TMCD provided management and other services to the Tele-Media
Debtors. Neither TMCD nor any of its
affiliates (except for the Tele-Media Debtors) is a Debtor in these cases and
neither TMCD nor any of its affiliates (except for the Tele-Media Debtors) has
filed for relief under the Bankruptcy Code.
As of June 30, 2002, the Tele-Media Debtors did not participate in
the Debtors’ centralized cash management system described above. Rather, the Tele-Media Debtors participated
in a cash management system managed by TMCD and certain of its affiliates. In the ordinary course of business, TMCD paid
the expenses of the Tele-Media Debtors and certain other non-debtor affiliates
of TMCD through a common paymaster account.
The Tele-Media Debtors also received certain disbursements and had
certain obligations to certain of the Debtors, including Adelphia Cablevision.
4.
In January 2005, the Debtors
filed the January 2005 Supplemental Schedule of Liabilities, which
consisted of a list of each Debtor’s net payable or receivable intercompany
balance to or from Adelphia Cablevision (the “Intercompany Schedule”). Also included were the net payable or receivable
affiliate balances for certain affiliates of the Debtors, including certain of
the co-borrowing Rigas entities.
Balances with entities that do not consolidate with Adelphia or are
non-co-borrowing Rigas entities are not included in the Intercompany Schedule.
5.
The May 2005 Intercompany Schedule supercedes
the January 2005 Intercompany Schedule in its entirety.
6.
After further review of the
Debtors’ books and records, the Debtors have determined that certain changes to
the January 2005 Intercompany Schedule were required to account for,
among other things: (i) beginning balance adjustments, (ii) purchase
accounting adjustments, (iii) intercompany interest adjustments, (iv) certain asset transfer adjustments, (v) certain
eliminations of duplicative co-borrowing interest charges, and (vi) certain
miscellaneous restatement and clerical adjustments (collectively, the “May 2005
Adjustments”). All of the May 2005
Adjustments have been made on the Intercompany Schedule annexed hereto.
7.
In
addition to the May 2005 Adjustments, the Debtors determined that the
Intercompany Schedule includes the opening intercompany balances of acquired entities. At the time such entities were acquired,
Adelphia carried over the then existing intercompany balances among the
acquired entities (the “Historic Entries”), which at the time had virtually no
substantive effect because such intercompanies netted out to zero. For example, in 1999, when Adelphia purchased
Century Communication Corporation or the FrontierVision system, each business
had its own cash management system with receivables and payables between the
acquired entities and their centralized cash management entity. Since such payables and receivables netted to
zero, the Historic Entries were left and remain on the books and records of the
Debtors. The Historic Entries have been
accounted for as if the entries were between the Bank of Adelphia and the
acquired entities. The Historic Entries
are reflected in the balances presented in the Intercompany Schedule but
the Debtors reserve the right to subsequently exclude, among other things, the
Historic Entries from the Intercompany Schedule. After removing the Historic Entries, on a
silo basis, the intercompany balances would be as follows:
ii
These Global Notes (the “Global
Notes”) Regarding Debtors’ May 2005 Amended Schedules of Liabilities
comprise an integral part of the May 2005 Amended Schedules of Liabilities
and should be referred to and considered in connection with any review of them
.
Amounts in Thousands
Intercompany
Receivable Balances
Intercompany
(Payable) Balances
Without Historic
Entries As Of
Without Historic
Entries As Of
Legal Entity
June 30, 2002
June 30, 2002
Total
Century Silo with Rigas Family Partnerships
$
5,113,042
$
(7,727,001
)
Century-TCI
Silo
$
267,868
$
(141,742
)
Total
UCA Silo with Rigas Family Partnerships
$
969,842
$
(728,011
)
Parnassos
Silo
$
—
$
(88,616
)
FrontierVision
Silo
$
4,958
$
(174,001
)
Total
Olympus Silo with Rigas Family Partnerships
$
2,837,222
$
(2,838,804
)
Silo 7A
$
16,931,808
$
(3,541,363
)
Silo 7B
Arahova
$
864,947
$
(75,508
)
Silo 7C
$
—
$
(411,112
)
Holding
Co. Guar., Non-Filers and Eliminations
$
84,142
$
(11,347,671
)
8.
The intercompany balances can be
characterized in many ways, including: (i)
pari passu
with
all third-party debt, including bank debt; (ii)
pari passu
with trade debt but subordinated to bank debt; (iii) subordinated to all
third-party debt but senior to common equity; or (iv) equity. In the Debtors’ First Amended Joint Plan of
Reorganization, dated February 4, 2005 (as it may be subsequently amended,
the “Plan”), the Debtors treated all intercompany payables as subordinated to
all third-party debt but senior to common equity. The Debtors reserve all of their rights with
respect to the intercompany balances, including, but not limited to, the
appropriate characterization of the intercompany balances in the Plan.
9.
For administrative convenience
only, without waiving any defense, including, but not limited to defenses
related to substantive consolidation or piercing the corporate veil, the filing
of the Intercompany Schedule in the jointly administered case for Adelphia
Communications Corporation, Case No. 02-41729, shall be deemed to be
a filing of the May 2005 Amended Schedules in each of the Debtors’ cases
and an amendment of previously filed bankruptcy schedules.
10.
The Debtors reserve all rights
to amend without notice the Bankruptcy Schedules in all respects, as may be
necessary or appropriate, including, but not limited to, the right to dispute
or to assert offsets or defenses to any claim reflected on the Bankruptcy
Schedules as to amount, liability or classification, to otherwise subsequently
designate any claim as “disputed,” “contingent” or “unliquidated” or to
reallocate liabilities between the pre-petition and post-petition periods based
on any additional information. Any
failure to designate a claim as “contingent,” “unliquidated,” or “disputed”
does not
iii
These Global Notes (the “Global
Notes”) Regarding Debtors’ May 2005 Amended Schedules of Liabilities
comprise an integral part of the May 2005 Amended Schedules of Liabilities
and should be referred to and considered in connection with any review of them
.
constitute
an admission by the Debtors that such claim is not “contingent,”
“unliquidated,” or “disputed.”
Although none of the balances on the Intercompany Schedule is
listed as contingent, disputed or unliquidated, the Debtors reserve the right
to seek alternative treatment of such balances, including, but not limited to,
equitable subordination or disallowance.
11.
Significant disputes exist
between creditors of the Arahova and Holding Company Debtor Groups regarding,
among other issues, (i) the appropriate legal characterization of the
intercompany claims, (ii) whether or not such claims should be netted on a
Debtor Group basis or preserved on a gross basis (a receivable and payable by
Debtor Group), and (iii) the inclusion or exclusion of the Historic
Entries from the Intercompany Schedule.
12.
Nothing contained in the
Bankruptcy Schedules shall constitute a waiver of the Debtors’ rights with
respect to these Chapter 11 cases, including, among other things, issues
involving substantive consolidation, equitable subordination and/or causes of
action arising under the provisions of Chapter 5 of the Bankruptcy Code and
other relevant non-bankruptcy laws to recover assets or avoid transfers.
13.
The preparation of the
Bankruptcy Schedules required the Debtors to make estimates and assumptions
that affect the reported amounts of assets and liabilities. Actual results could differ from those
estimates. The Debtors reserve the right
to make further adjustments to the Intercompany Schedule.
14.
Given the differences between
the information requested in the Bankruptcy Schedules and the financial
information utilized under generally accepted accounting principles in the
United States (the “GAAP”), the aggregate asset values and claim amounts set
forth in the Bankruptcy Schedules do not reflect the amounts that would be set
forth in a balance sheet prepared in accordance with GAAP. In addition, not all of the direct and
indirect subsidiaries of Adelphia have filed for protection under Chapter
11. Accordingly, combining the assets
and claims set forth in the Bankruptcy Schedules of the Debtors would result in
amounts that may be substantially different from financial information regarding
Adelphia and its subsidiaries that would be prepared on a consolidated basis
under GAAP. The balances on the
Intercompany Schedule are unaudited and certain elements of the balances
were not part of the Debtors’ restatement process.
15.
The Debtors and their agents,
attorneys and financial advisors do not guarantee or warrant the accuracy or
completeness of the data that is provided herein and shall not be liable for
any loss or injury arising out of or caused in whole or in part by the acts, errors
or omissions, whether negligent or otherwise, in procuring, compiling,
collecting, interpreting, reporting, communicating or delivering the
information contained herein. While
every effort has been made to provide accurate and complete information herein,
inadvertent errors or omissions may exist.
The Debtors and their agents, attorneys and financial advisors expressly
do not undertake any obligation to update, modify, revise or re-categorize the
information provided herein, or to notify any third party should the
information be updated, modified, revised or re-categorized. In no event shall the
iv
These Global Notes (the “Global
Notes”) Regarding Debtors’ May 2005 Amended Schedules of Liabilities
comprise an integral part of the May 2005 Amended Schedules of Liabilities
and should be referred to and considered in connection with any review of them
.
Debtors or their agents, attorneys and financial advisors be liable to
any third party for any direct, indirect, incidental, consequential or special
damages (including, but not limited to, damages arising from the disallowance
of a potential claim against the Debtors or damages to business reputation,
lost business or lost profits), whether foreseeable or not and however caused,
even if the Debtors or their agents, attorneys and financial advisors are
advised of the possibility of such damages.
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