================================================================= ADELPHIA BANKRUPTCY NEWS Issue Number 8 ----------------------------------------------------------------- Copyright 2002 (ISSN XXXX-XXXX) June 26, 2002 ----------------------------------------------------------------- Bankruptcy Creditors' Service, Inc. 609-392-0900 FAX 609-392-0040 ----------------------------------------------------------------- ADELPHIA BANKRUPTCY NEWS is published by Bankruptcy Creditors' Service, Inc., 24 Perdicaris Place, Trenton, New Jersey 08618, on an ad hoc basis (generally every 10 to 20 days) as significant activity occurs in the Debtors' cases. New issues are prepared by Danilo R. Munoz, Jr., Vince Brandt and Peter A. Chapman, Editors. Subscription rate is US$45 per issue. Any re-mailing of ADELPHIA BANKRUPTCY NEWS is prohibited. ================================================================= IN THIS ISSUE ------------- [00065] ADELPHIA COMMUNICATIONS FILES FOR CHAPTER 11 PROTECTION [00066] ABIZ'S SECOND MOTION FOR MORE TIME TO FILE SCHEDULES [00067] ABIZ'S MOTION TO SECURE $15MM OF DIP FINANCING FROM BEAL [00068] ABIZ LONG HAUL'S CHAPTER 11 DATABASE [00069] ABIZ LONG HAUL'S 20 LARGEST UNSECURED CREDITORS [00070] ABIZ INTERNATIONAL'S CHAPTER 11 DATABASE [00071] ABIZ INVESTMENT EAST'S CHAPTER 11 DATABASE [00072] ABIZ INVESTMENT EAST'S 20 LARGEST UNSECURED CREDITORS [00073] ABIZ INVESTMENT'S CHAPTER 11 DATABASE [00074] ABIZ INVESTMENT'S 20 LARGEST UNSECURED CREDITORS [00075] ABIZ JACKSONVILLE'S CHAPTER 11 DATABASE [00076] ABIZ JACKSONVILLE'S 20 LARGEST UNSECURED CREDITORS [00077] ABIZ LOUISIANA'S CHAPTER 11 DATABASE [00078] ABIZ LOUISIANA LLC'S CHAPTER 11 DATABASE [00079] ABIZ JACKSONVILLE'S 20 LARGEST UNSECURED CREDITORS [00080] ABIZ NASHVILLE'S CHAPTER 11 DATABASE [00081] ABIZ NASHVILLE'S 20 LARGEST UNSECURED CREDITORS [00082] ABIZ SOUTH CAROLINA'S CHAPTER 11 DATABASE [00083] ABIZ SOUTH CAROLINA'S 20 LARGEST UNSECURED CREDITORS [00084] ABIZ VIRGINIA'S CHAPTER 11 DATABASE [00085] ABIZ VIRGINIA'S 20 LARGEST UNSECURED CREDITORS [00086] ABIZ'S FIRST MOTION TO EXTEND REMOVAL PERIOD [00087] DEBTORS' MOTION FOR JOINT ADMINISTRATION OF CASES [00088] CENTURY'S MOTION TO EXTEND TIME TO COMPLY WITH RULE 1007 [00089] DEBTORS' MOTION TO PAY PREPETITION CRITICAL VENDOR CLAIMS [00090] ABIZ SURPASSES 500,000TH LOS, MAJOR INDUSTRY MILESTONE KEY DATE CALENDAR ----------------- 03/27/02 ABIZ's Voluntary Petition Date 05/29/02 Expiration of ACC-Backed DIP Financing Facility for ABIZ 06/10/02 CENTURY's Voluntary Petition Date 06/25/02 ACOM's Voluntary Petition Date 07/02/02 ABIZ Deadline to remove actions pursuant to Rule 9027 07/10/02 ACOM Deadline to file Schedules of Assets & Liabilities 07/10/02 ACOM Deadline to file Statement of Financial Affairs 07/10/02 ACOM Deadline to file Lists of Leases and Contracts 07/10/02 CENTURY Deadline to file Schedules of Assets & Debts 07/10/02 CENTURY Deadline to file Statement of Financial Affairs 07/10/02 CENTURY Deadline to file Lists of Leases and Contracts 07/15/02 ACOM Deadline to provide adequate assurance to Utilities 07/25/02 Expiration of ABIZ's Exclusive Plan Proposal Period 07/25/02 ABIZ Deadline to file Schedules of Assets & Liabilities 07/25/02 ABIZ Deadline to file Statement of Financial Affairs 07/25/02 ABIZ Deadline to file Lists of Leases and Contracts 08/24/02 Deadline to make decisions about ACOM lease dispositions 09/08/02 CENTURY Deadline to remove actions pursuant to Rule 9027 09/23/02 Expiration of ABIZ's Exclusive Solicitation Period 09/23/02 ACOM Deadline to remove actions pursuant to Rule 9027 10/08/02 Expiration of CENTURY's Exclusive Plan Proposal Period 10/23/02 Expiration of ACOM's Exclusive Plan Proposal Period 12/07/02 Expiration of CENTURY's Exclusive Solicitation Period 12/22/02 Expiration of ACOM's Exclusive Solicitation Period 06/30/03 Expiration of $15MM Beal-Backed DIP Financing for ABIZ 03/26/04 Deadline for ABIZ's Commencement of Avoidance Actions 06/09/04 Deadline for CENTURY's Commencement of Avoidance Actions 06/24/04 Deadline for ACOM's Commencement of Avoidance Actions Deadline to make decisions about ABIZ lease dispositions Bar Date for filing Proofs of Claim against ABIZ Bar Date for filing Proofs of Claim against CENTURY Bar Date for filing Proofs of Claim against ACOM First Meeting of Creditors pursuant to 11 USC Sec. 341 REFERENCE NOTES --------------- "ABIZ" and "Adelphia Business" refer to Adelphia Business Solutions, Inc., and its debtor-affiliates that filed chapter 11 petitions on March 27, 2002. These debtors' restructurings are jointly administered under case number 02-11388 and these debtors are represented by lawyers at Weil, Gotshal & Manges. ABIZ is a 2001 spin-out from Adelphia Communications Corporation. "CENTURY" and "Century Communications" refer to Century Communications Corporation. Century filed for chapter 11 protection on June 10, 2002. Case number 02-12834 is assigned to CENTURY's bankruptcy case. Century operates cable television services in Colorado, California and Puerto Rico. CENTURY says it is an indirect wholly owned subsidiary of ACOM and an ABIZ affiliate. Lawyers at Willkie, Farr & Gallagher represent CENTURY. "ACOM" and "Adelphia Communications" refer to Adelphia Communications Corporation (OTC: ADELA). ACOM says it filed for chapter 11 protection in the Southern District of New York on June 25, 2002, though the bankruptcy clerk can't provide copies of the paperwork. "Adelphia" collectively refers to ABIZ and ACOM. "Debtors" collectively refers to ABIZ, CENTURY and ACOM. ----------------------------------------------------------------- [00065] ADELPHIA COMMUNICATIONS FILES FOR CHAPTER 11 PROTECTION ----------------------------------------------------------------- COUDERSPORT, Pennsylvania -- June 25, 2002 -- Adelphia Communications Corporation (OTC: ADELA) announced today that the Company and more than 200 of its subsidiaries have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of New York. Operations to Continue with No Interruption in Service Adelphia will continue to conduct its business, supplying cable entertainment and other services to its customers in more than 3,500 communities across the nation. The Company expects that all post-petition obligations to local franchise authorities, vendors, employees and others will be satisfied in the normal course of business. Adelphia Chairman and interim Chief Executive Officer Erland E. Kailbourne said, "This action was taken to stabilize Adelphia's financial foundation and to continue quality service to our customers. After many weeks of hard work and careful consideration of all the strategic alternatives available, we determined that the restructuring of our debt through the Chapter 11 process is the optimal solution for helping Adelphia thoroughly resolve all the issues facing the Company. Entering into these proceedings will enable us to fully evaluate our enterprise without the immediate pressure to sell valuable assets that may well benefit the Company in the future. Moreover, this process will enable us to emerge with a new capital structure, and position us to maintain the fundamental strengths of this Company." Lenders to Provide $1.5 Billion in DIP Financing; Cable Upgrades to Continue The Company also announced that it has entered into a $1.5 billion debtor in possession (DIP) facility. The Company's ability to obtain borrowings under such facility is subject to satisfaction of customary conditions in favor of the lenders and receipt of court approval and certain third party consents. A hearing to approve a portion of the facility has been scheduled for Friday, June 28, 2002. The DIP facility is being led by JPMorgan Chase Bank and Citigroup USA, Inc. Upon approval, this facility will be available to fund Adelphia's continued ability to operate and provide quality cable entertainment throughout this process. In addition, this financing will provide the capital necessary to continue the Company's build out and upgrade efforts in order to offer digital cable, high-speed data and other enhanced services to its customers. Employees to Continue to Receive Wages and Benefits Mr. Kailbourne emphasized that employees will continue to be paid their wages and health and welfare benefits, subject to court approval. The Company's businesses will continue operations, and local franchise authorities, programming suppliers and other vendors will continue to be paid in the normal course of business. He added that Adelphia intends to restructure its balance sheet in order to reduce the burden of the Company's debts, thereby improving Adelphia's leverage and liquidity position. Background on Chapter 11 Chapter 11 of the U.S. Bankruptcy Code allows a company to continue operating its business and managing its assets in the ordinary course of business. Congress enacted Chapter 11 to encourage and enable a debtor business to continue to operate as a going concern, to preserve jobs and to maximize the recovery of all its stakeholders. The Company is represented in its Chapter 11 cases by Willkie Farr & Gallagher. About Adelphia Communications Adelphia Communications Corporation, with headquarters in Coudersport, Pennsylvania, is the sixth-largest cable television company in the country [and takes its place as the fifth-largest bankruptcy filing in U.S. history]. ----------------------------------------------------------------- [00066] ABIZ'S SECOND MOTION FOR MORE TIME TO FILE SCHEDULES ----------------------------------------------------------------- See prior entry at [00055]. Motion granted. ----------------------------------------------------------------- [00067] ABIZ'S MOTION TO SECURE $15MM OF DIP FINANCING FROM BEAL ----------------------------------------------------------------- CANONSBURG, Pennsylvania -- June 20, 2002 -- Adelphia Business Solutions (ABS) (Pink Sheets: ABIZQ) today announced it has entered into an agreement (the "Agreement") with Beal Capital Markets, Inc., of Plano, Texas ("Beal") in which Beal expresses an interest in providing to ABS a proposed $15 million secured debtor-in-possession credit facility (the "Credit Facility"), pending the satisfaction of numerous material conditions, including the negotiation and execution of a definitive agreement and the formal approval of the U.S. Bankruptcy Court. ABS believes that, in conjunction with previous modifications to ABS' business plan, the Credit Facility will provide ABS with the necessary liquidity to emerge from the Chapter 11 process. Under its modified business plan, ABS will continue to conduct business operations in 35 company-owned markets located in the eastern half of the U.S., and in 17 other company-managed markets located throughout the country. Most of the 35 owned markets, which stretch from Vermont to Florida and from Kansas to Texas, are interconnected via a high-speed fiber optic network that permits ABS to offer intercity services and allows for efficient, cross-city use of existing telecommunications technology. "The recent upheaval in the telecommunications industry has dramatically reduced the number of companies in the competitive local exchange arena," notes Bob Guth. "We intend to continue to offer customers a choice and to ensure that competitive forces are in place in the industry. We believe that we have a terrific customer base, committed employees and extremely valuable network assets, and expect that this modest interim funding will see us through the Chapter 11 process toward a fully-funded business plan." "I'd like to thank all of our customers, who stood with us during this period of uncertainty," continued Mr. Guth. "We appreciate the value they place on choice, and sincerely appreciate their commitment to ABS, and to the industry as a whole." ABS expects to continue to offer its full line of products and services, including local voice and data, intercity services, long distance, Internet, and a number of other value-added services including web-hosting and co- location. "We looked very closely at ABS' current results and business plan and we see a profitable core operation with strong customer relationships," notes Ken Springfield of Beal Capital Markets. "We're looking forward to completing our due diligence and developing a mutually beneficial business relationship with the people at Adelphia Business Solutions." Concurrent with this business-restructuring announcement, ABS also announced that, on June 18, 2002, certain of its subsidiaries (those not previously included in the initial group of Chapter 11 cases commenced on March 27, 2002) commenced affiliated Chapter 11 cases under joint administration with the initial group of companies. "This is purely an administrative step for us, providing protection to our DIP lender, and is not indicative of any change in the business status of these operations," stated Mr. Guth. The salient terms of the proposed DIP Financing facility are: Borrowers: Adelphia Business Solutions, Inc. and indirect subsidiaries of ABIZ EXCEPT Adelphia Business Solutions of Pennsylvania, Inc., PECO Hyperion Telecommunications, Susquehanna Adelphia Business Solutions, and Adelphia Business Solutions Capital, Inc. Guarantors: ABIZ-Pennsylvania and ABIZ-Capital DIP Lender: Beal Capital Markets, Inc., or Beal Bank, S.S.B. or any wholly owned affiliate of Beal Bank, S.S.B., as assignee of Beal Capital Markets, Inc. The Facility: The Loan consists of a single-draw term loan credit facility for $15,000,000. The ultimate amount of the Facility will be subject to the DIP Lender's determination of the appraised value of the DIP Collateral. Drawdown: The Loan will be advanced in one drawdown, on the Closing Date. No portion of the Facility shall be available for drawdown after the Closing Date. Use of Proceeds: The DIP Financing shall be used to: * fund post-Closing Date operating expenses of the Borrowers and Guarantors in accordance with, but limited to, the Cash Budget; * fund certain post-petition but pre-Closing Date fees accrued under the Management Services Agreement between ABIZ and Adelphia Communications Corporation, to the extent included in the Cash Budget; and, * pay all fees and expenses as provided under the DIP Loan Agreement. Cash Budget and Business Plan: Prior to the Closing Date, the Borrowers shall have provided to the DIP Lender: * a cash operating budget for the period from July 1, 2002 through June 30, 2003; * a business plan; * other financial information to monitor compliance with the Free Cash Flow Variance. Term: The DIP Loan shall be repaid in full at the earliest to occur of: (a) one year after the Closing Date, but not later than June 30, 2003; (b) the Termination Date; and, (c) the effective date of a plan of reorganization or liquidation for any of the Borrowers. Closing Date: The date upon which all conditions precedent to the making of the initial extension of credit are satisfied. Interest: Loans will bear interest at an annual rate of Wall Street Journal's highest Prime Rate (published on the money section) plus 4% per annum, but in no event less than 12% per annum. In the event of default, the interest rate shall be the non-default rate plus 4% per annum. Interest shall be payable in cash, monthly in arrears. Closing Date Financing Fee: A Closing Fee equal to 6% of the aggregate facility (i.e., $900,000), fully earned as of the Closing Date, shall be paid on the Closing Date to the DIP Lender. Monthly Admin. Fee: A monthly administration fee of $15,000 shall be paid on the Closing Date and the first day of each month thereafter as any portion of the DIP Loan is outstanding. Nature of Fees: Non-refundable under all circumstances. Voluntary Prepayments: Permitted at any time, upon 5 business days' prior written notice and in reasonable increments to be established in the DIP Loan Agreement, without prepayment penalty. Mandatory Repayments: (a) Mandatory repayment of the DIP Loan under the Facility shall be required in an amount equal to 100% of insurance and condemnation proceeds arising from, derived or related to the DIP Collateral. (b) Asset Sales: (1) General Rule: Except for Paydown Permitted Asset Sales and Non-Paydown Permitted Asset Sales, any sale of assets shall be subject to the approval of the DIP Lender. As a condition to for approval, the DIP Lender may require that the net sale proceeds shall be applied to repayment of the DIP Loan. (2) Paydown Permitted Asset Sales: Sale of equipment and inventory of the Borrowers shall be permitted with notice to but without prior approval of the DIP Lender, if: * all sales shall be for fair value, in bona fide arm's-length transactions with third party purchasers; * the gross purchase price for any item must not exceed $500,000, and must be payable entirely in cash at closing; * the net purchase price for any item must equal at least 25% of the net book value of that item; * the sale otherwise must be permitted without further order of the Bankruptcy Court, in accordance with the Omnibus Sale Order; and, * all net proceeds of any sale shall be applied to repayment of the DIP Loan. (3) Non-Paydown Permitted Asset Sales: Sale of assets pertaining to specified non-continuing markets shall be permitted without prior approval of the DIP Lender and without requiring that the net sale proceeds be applied to the repayment of the DIP Loan, if: * all the sales shall be for fair value, in bona fide arm's-length transactions with third party purchasers; * the gross purchase price for any item must not exceed $50,000, and must be payable entirely in cash at closing; * the aggregate gross purchase price of all the sales in any calendar month must not exceed $400,000; and, * all net proceeds shall be retained and applied to the expenses detailed in the Cash Budget. Collateral and Priority: All DIP obligations shall be: (a) Secured (subject to the Carve-Out) by a first priority, fully perfected security interest in and lien on all of the existing and after acquired assets of the Borrowers and the Guarantors; (b) Accorded administrative priority status under Section 364(c)(1) of the Bankruptcy Code, having a superpriority over any and all administrative expenses of the kind specified in Sections 503(b) or 507(b) of the Bankruptcy Code, including any superpriority administrative claims granted the Subordinate DIP Creditors, subject only to the Carve-Out; and, (c) Joint and several among the Borrowers and the Guarantors and senior in right of payment to any obligations owed by the Borrowers or the Guarantors to the Subordinate DIP Creditors under the Subordinate DIP Loan Agreement. All DIP Collateral shall be free and clear of any and all liens, claims and encumbrances, except for: * those in favor of the DIP Lender; * the Permitted Pre-Petition Liens; * the liens granted in favor of the Subordinate DIP Creditors pursuant to the Subordinate DIP Loan Agreement and the April Interim DIP Order; * the Permitted Wachovia Liens; and, * the Permitted Post-Petition Liens Carve-Out: The Lenders agree to a $1,500,000 Carve-Out following termination of the Facility due to default to allow for payment of professional fees incurred in these Cases and unpaid fees pursuant to 28 U.S.C. 1930(a)(6) and any fees payable to the Clerk of the Bankruptcy Court. Collateral Value Covenant: The Borrowers shall maintain DIP Collateral at least equal the greater of: (a) $40,000,000 (subject to reduction as part of paydowns of the DIP Loan); or, (b) an amount equal to 200% of the DIP Obligations then outstanding. Accounts Receivable Covenant: The Borrowers shall maintain, at all times, bona fide accounts receivable in aggregate amounts as the DIP Lender may establish from time to time in its sole discretion. In any case, accounts receivable owing by ABIZ or ACC or the Rigas family, or any of their respective affiliates, shall be ineligible. Wachovia L/Cs: Following the Closing Date, the Borrowers and the Guarantors shall arrange for the $20,000,000 letter of credit issued by Wachovia Bank to the Commonwealth of Pennsylvania in respect of the existing contract between Commonwealth of Pennsylvania and ABIZ-Pennsylvania to be replaced by a letter of credit in like face amount issued by the DIP Lender or its designee. Events of Default: (a) dismissal of any of the Cases or conversion of any of the cases to a chapter 7 case; (b) appointment of a chapter 11 trustee in any of the Cases; (c) the granting of any other claim superpriority status or a lien or security interest equal or superior to that granted to the DIP Lender in any of the Cases; (d) the entry of an order that in any respect stays, reverses, vacates or otherwise modifies the DIP Loan Agreement, any intercreditor and subordination agreement or the Final Order without the prior written consent of the DIP Lender, (e) appointment of an examiner having enlarged powers beyond those set forth under Section 1106(a)(3) and (4) of the Bankruptcy Code; (f) the failure of any of the Borrowers to pay interest or fees when due and that default shall continue for two business days or principal when due; (g) the failure of any of the Borrowers or Guarantors to comply with any negative covenant, collateral covenant, collateral value covenant or accounts receivable covenant or the covenants pertaining to the Permitted Wachovia Liens, (h) the actual or substantive consolidation or combination of any Borrower with any other person (other than a Borrower); (i) the ABIZ/ACC Management Services Agreement shall be terminated or rejected; (j) the failure of any of the Borrowers or Guarantors to perform or comply with any other term or covenant and that default shall continue unremedied for a period of 10 days; (k) any representation or warranty by any of the Borrowers or Guarantors shall be incorrect or misleading in any material respect when made; (l) an unfavorable Free Cash Flow Variance shall occur; and, (m) any other event which constitutes an Event of Default under the Subordinate DIP Loan Agreement. ----------------------------------------------------------------- [00068] ABIZ LONG HAUL'S CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor: Adelphia Business Solutions Long Haul, L.P. One North Main Street Coudersport, Pennsylvania 16915-1141 Bankruptcy Case No.: 02-12974 Chapter 11 Petition Date: June 18, 2002 Court: Southern District of New York (Manhattan) Estimated Assets: $10 to $50 Million Estimated Debts: $10 to $50 Million ----------------------------------------------------------------- [00069] ABIZ LONG HAUL'S 20 LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Entity Nature of Claim Claim Amount ------ --------------- ------------ Qwest Communications Trade Debt $8,422,108 P.O. Box 856169 Louisville, KY 40285-6169 Fujitsu Fujitsu Trade Debt $8,415,187 P.O. Box 13730 Newark, NJ 07188 (214) 690-6000 Attn: Accounts Receivable Grande Communications Trade Debt $1,698,992 401 Carlson Circle San Marcos, TX 78666 Attn: Jared Benson (512) 878-5222 DTI Trade Debt $1,683,466 8112 Maryland Avenue 4th Floor St. Louis, MO 63105 Adelphia Communications Intercompany Debt $1,367,366 Corporation One North Main Street Coudersport, PA 16915-1141 Metromedia Fiber Trade Debt $569,535 Networks PO Box 7247-6887 Philadelphia, PA 19170-6887 Dominion Telecom Trade Debt $491,478 701 E. Cary Street Richmond, VA 23219 Tellabs Operations Trade Debt $403,122 P.O. Box 99206 Chicago IL 60693-9206 Lucent Technologies Trade Debt $339,982 P.O. Box 100317 Atlanta, GA 30384-0317 Sprint Trade Debt $212,881 Network Building & Trade Debt $141,191 Consulting Neescom Trade Debt $135,666 Kamand Construction, Inc. Trade Debt $135,235 Williams Communications Trade Debt $129,477 Looking Glass Networks Trade Debt $91,000 Mastec North America Trade Debt $58,850 Tyco Electronics Power Trade Debt $23,583 Sys. Inc. PWR, LLC Trade Debt $16,650 I-K Electric Company Trade Debt $16,124 First South Utility Trade Debt $15,506 ----------------------------------------------------------------- [00070] ABIZ INTERNATIONAL'S CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor: Adelphia Business Solutions International LLC One North Main Street Coudersport, PA 16915-1141 Bankruptcy Case No.: 02-12975 Chapter 11 Petition Date: June 18, 2002 Court: Southern District of New York (Manhattan) Total Assets: $0 to $50,000 Total Debts: $0 to $50,000 ----------------------------------------------------------------- [00071] ABIZ INVESTMENT EAST'S CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor: Adelphia Business Solutions Investment East, LLC One North Main Street Coudersport, Pennsylvania 16915-1141 Bankruptcy Case No.: 02-12976 Chapter 11 Petition Date: June 18, 2002 Court: Southern District of New York (Manhattan) Estimated Assets: $10 to $50 Million Estimated Debts: $10 to $50 Million ----------------------------------------------------------------- [00072] ABIZ INVESTMENT EAST'S 20 LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Entity Nature of Claim Claim Amount ------ --------------- ------------ Fujitsu Trade Debt $5,196,009 P.O. Box 13730 Newark, NJ 07188-0730 Verizon Trade Debt $964,844 P.O. Box 101687 Atlanta, GA 30392-1687 BellSouth Trade Debt $709,495 P.O. Box 105373 Atlanta, GA 30348 Sprint Trade Debt $409,030 P.O. Box 101465 Atlanta, GA 30392 Carrier Access Corp. Trade Debt $149,313 CCU, Inc. Trade Debt $107,906 Light Link Fiber Optic Trade Debt $87,349 Services AT&T Trade Debt $74,016 Pro Player Stadium Trade Debt $67,627 WBP I Ltd. Trade Debt $57,095 Shiflett Enterprises, Inc. Trade Debt $41,525 First South Utility Trade Debt $31,982 Telmar Network Technology Trade Debt $30,929 Illuminet, Inc. Trade Debt $29,651 Ryon & Associates, Inc. Trade Debt $25,906 as Agent Adelphia Communications Intercompany Debt $24,131 Corporation Cable Constructors, Inc. Trade Debt $15,466 Market Halsey Urban Trade Debt $14,599 Renewal, LLC SNET Diversified Group Trade Debt $9,615 Kelly Services Trade Debt $9,008 ----------------------------------------------------------------- [00073] ABIZ INVESTMENT'S CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor: Adelphia Business Solutions Investment, LLC aka ACC Holdings IV, LLC One North Main Street Coudersport, Pennsylvania 16915-1141 Bankruptcy Case No.: 02-12977 Chapter 11 Petition Date: June 18, 2002 Court: Southern District of New York (Manhattan) Estimated Assets: More than $100 Million Estimated Debts: $10 to $50 Million ----------------------------------------------------------------- [00074] ABIZ INVESTMENT'S 20 LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Entity Nature of Claim Claim Amount ------ --------------- ------------ Fujitsu Trade Debt $8,094,103 P.O. Box 13730 Newark, NJ 07188-0730 PSE&G Trade Debt $1,022,536 P.O. Box 18414 Newark, NJ 07191 Verizon Trade Debt $837,931 P.O. Box 101687 Atlanta, GA 30392-1687 Adelphia Communications Intercompany Debt $738,695 Corporation One North Main Street Coudersport, PA 16915-1141 Sprint Trade Debt $443,783 P.O. Box 101465 Atlanta, GA 30392 The CIT Group Trade Debt $252,044 General Post Office P.O. Box 26701 New York, NY 10087-6701 AT&T Trade Debt $220,331 Southwestern Bell Trade Debt $177,742 Carrier Access Corp. Trade Debt $164,838 Comcast Cable Trade Debt $126,829 SNET Diversified Group Trade Debt $115,797 Tellabs Operations, Inc. Trade Debt $106,315 BellSouth Trade Debt $93,462 CSG Systems, Inc. Trade Debt $76,806 Cable Utilities, Inc. Trade Debt $72,806 Illuminet, Inc. Trade Debt $53,739 Grimm Construction Corp. Trade Debt $36,410 Somera Communications Trade Debt $32,926 Anchor Investors Trade Debt $27,858 Corning Cable Systems Trade Debt $27,797 ----------------------------------------------------------------- [00075] ABIZ JACKSONVILLE'S CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor: Adelphia Business Solutions of Jacksonville, Inc. One North Main Street Coudersport, PA 16915-1141 Bankruptcy Case No.: 02-12979 Chapter 11 Petition Date: June 18, 2002 Court: Southern District of New York (Manhattan) Estimated Assets: $10 Million to $50 Million Estimated Debts: $1 Million to $10 Million ----------------------------------------------------------------- [00076] ABIZ JACKSONVILLE'S 20 LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Entity Nature of Claim Claim Amount ------ --------------- ------------ Adelphia Communications Intercompany Debt $1,268,487 Corporation Fujitsu Trade Debt $293,793 Attn: Accounts Receivable P.O. Box 13730 Newark, NJ 07188 (214) 690-6000 Bell South Trade Debt $179,785 AT&T Broadband Trade Debt $114,920 Carrier Access Corp. Trade Debt $49,205 Sprint Trade Debt $31,702 Illuminet Inc. Trade Debt $27,585 Sunbelt Communications Trade Debt $6,444 Power Battery Company, Inc. Trade Debt $6,125 SNET Diversified Group, Inc. Trade Debt $5,640 Personnel One Trade Debt $4,706 Liberty Property Ltd. Trade Debt $4,198 Partnership Ring Power Corporation Trade Debt $1,337 Universal Service Trade Debt $1,073 Administrative Nick Deonas Realty I Trade Debt $950 3COM Trade Debt $950 De Lage Landen Financial Trade Debt $793 Service LNR Millenium Manager, Inc. Trade Debt $751 Sherlon Investment Corp. Trade Debt $679 Minolta Leasing Services Trade Debt $614 ----------------------------------------------------------------- [00077] ABIZ LOUISIANA'S CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor: Adelphia Business Solutions of Louisiana, Inc. One North Main Street Coudersport, PA 16915-1141 Bankruptcy Case No.: 02-12980 Chapter 11 Petition Date: June 18, 2002 Court: Southern District of New York (Manhattan) Estimated Assets: $0 to $50,000 Estimated Debts: $0 to $50,000 ----------------------------------------------------------------- [00078] ABIZ LOUISIANA LLC'S CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor: Adelphia Business Solutions of Louisiana, LLC One North Main Street Coudersport, Pennsylvania 16915-1141 Bankruptcy Case No.: 02-12981 Chapter 11 Petition Date: June 18, 2002 Court: Southern District of New York (Manhattan) Estimated Assets: $1 Million to $10 Million Estimated Debts: $500,000 to $1 million ----------------------------------------------------------------- [00079] ABIZ JACKSONVILLE'S 20 LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Entity Nature of Claim Claim Amount ------ --------------- ------------ Adelphia Communications Intercompany Debt $468,376 Corporation 1 North Main Street Coudersport, PA 16915-1141 Fujitsu Trade Debt $214,771 Tyco Electronics Power Trade Debt $66,575 System Inc. Bell South Trade Debt $52,714 Telmar Network Technology Trade Debt $32,542 Istar Ctl. I, L/P Lehman Trade Debt $16,936 Ali, Inc Carrier Access Corporation Trade Debt $16,273 Sprint Trade Debt $5,462 East Skelly LLC Trade Debt $5,366 S.M. Brell, L.P. Trade Debt $4,214 D/B/A Louisiana Tower WJB Pecanland Trade Debt $2,341 SNET Diversified Group Trade Debt $1,623 Illuminet Inc. Trade Debt $1,500 City of New Orleans Trade Debt $900 Apcoa Standard Parking Trade Debt $760 CitiCapital Trade Debt $481 Mac & Sharon Dearman Trade Debt $450 One Call Locates, Inc. Trade Debt $416 Preston Fontenot Trade Debt $358 James C. Heath Trade Debt $333 ----------------------------------------------------------------- [00080] ABIZ NASHVILLE'S CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor: Adelphia Business Solutions of Nashville, L.P. One North Main Street Coudersport, Pennsylvania 16915-1141 Bankruptcy Case No.: 02-12982 Chapter 11 Petition Date: June 18, 2002 Court: Southern District of New York (Manhattan) Estimated Assets: $10 Million to $50 Million Estimated Debts: $1 Million to $10 Million ----------------------------------------------------------------- [00081] ABIZ NASHVILLE'S 20 LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Entity Nature of Claim Claim Amount ------ --------------- ------------ Adelphia Communications Intercompany Debt $1,498,449 Corporation 1 North Main Street Coudersport, PA 16915-1141 Fujitsu Trade Debt $1,223,412 Attn: Accounts Receivable P.O. Box 13730 Newark, NJ 07188 (214) 690-6000 Bell South Trade Debt $413,123 P.O. Box 105373 Atlanta, GA 30348 The CIT Group Trade Debt $109,140 Carrier Access Corporation Trade Debt $60,281 Sprint Trade Debt $33,981 SNET Diversified Group Trade Debt $26,304 Fishel Technologies Trade Debt $24,917 Walker and Associates, Inc. Trade Debt $16,357 Donelson Corporate Trade Debt $15,795 Center, L.P. Power and Telephone Trade Debt $14,684 Supply Co. Avaya Financial Services Trade Debt $6,775 Pirelli Cable Corp. Trade Debt $5,795 Qwest Trade Debt $5,395 Randstad Trade Debt $4,817 Special Olympics Trade Debt $4,800 Tennessee, Inc. Illuminet, Inc. Trade Debt $4,572 Fulton Southern, Inc. Trade Debt $4,070 Nashville Electric Service Trade Debt $3,901 Arris Trade Debt $2,100 ----------------------------------------------------------------- [00082] ABIZ SOUTH CAROLINA'S CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor: Adelphia Business Solutions of South Carolina, Inc. One North Main Street Coudersport, Pennsylvania 16915-1141 Bankruptcy Case No.: 02-12984 Chapter 11 Petition Date: June 18, 2002 Court: Southern District of New York (Manhattan) Estimated Assets: $1 Million to $10 Million Estimated Debts: $1 Million to $10 Million ----------------------------------------------------------------- [00083] ABIZ SOUTH CAROLINA'S 20 LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Entity Nature of Claim Claim Amount ------ --------------- ------------ Fujitsu Trade Debt $959,571 P.O. Box 13730 Newark, NJ 07188-0730 Adelphia Communications Intercompany Debt $854,850 Corporation 1 North Main Street Coudersport, PA 16915-1141 BellSouth Trade Debt $139,470 Southeast Utilities of GA, Trade Debt $58,996 Inc. Duke Engineering & Services Trade Debt $25,344 Sprint Trade Debt $15,709 Wilson Fiber Line Trade Debt $13,849 DBA Cable Extraordinaire Trade Debt $7,599 Orius Central Office Trade Debt $3,950 Services Henry W. Halsberg Trade Debt $3,368 d/b/a Bergamo Partners Business Telecom Inc. FL Trade Debt $3,015 Public Service Commission Trade Debt $2,660 Warehouses, Inc. Trade Debt $1,540 Pirelli Cable Corp Trade Debt $1,459 Universal Service Trade Debt $935 Administrative Co. SNET Diversified Group Trade Debt $904 Columbia Television Trade Debt $850 Broadcasting d/b/a WOLO TV Purchase Power Trade Debt $659 Greer Commission of Trade Debt $583 Public Work Birch Telecom of the Trade Debt $416 South - TN ----------------------------------------------------------------- [00084] ABIZ VIRGINIA'S CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor: Adelphia Business Solutions of Virginia, LLC One North Main Street Coudersport, Pennsylvania 16915-1141 Bankruptcy Case No.: 02-12985 Chapter 11 Petition Date: June 18, 2002 Court: Southern District of New York (Manhattan) Estimated Assets: $1 Million to $10 Million Estimated Debts: $0 to $50,000 ----------------------------------------------------------------- [00085] ABIZ VIRGINIA'S 20 LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Entity Nature of Claim Claim Amount ------ --------------- ------------ Fujitsu Trade Debt $814,753 P.O. Box 13730 Newark, NJ 07188-0730 Verizon Trade Debt $302,289 P.O. Box 17577 Baltimore, MD 21297-0513 Adelphia Communications Intercompany Debt $81,888 Corporation Cox Communications Trade Debt $28,153 Continental- Elthan Trade Debt $26,348 Associates Illuminet, Inc. Trade Debt $21,821 VPS Communications, Inc. Trade Debt $19,200 d/b/a Dominion Telecom, Inc. Atlantic Cable & Trench Trade Debt $18,000 Sprint Trade Debt $16,607 Peregrine Remedy, Inc. Trade Debt $16,460 Dominion Telecom, Inc. Trade Debt $11,000 VSI Viatech Services Inc. Trade Debt $6,906 KMC Data Hold Co., LLC Trade Debt $6,438 JWS Communications Trade Debt $5,475 MCI Worldcom Comm., Inc. Trade Debt $2,694 Ted Hoagland Trade Debt $2,008 SNET Diversified Group Trade Debt $1,679 Aspen Cleaning Corporation Trade Debt $967 Pitney Bowes Credit Trade Debt $578 Corporation Commonwealth Paper Company Trade Debt $454 ----------------------------------------------------------------- [00086] ABIZ'S FIRST MOTION TO EXTEND REMOVAL PERIOD ----------------------------------------------------------------- ABIZ seeks an extension of its time to file notices of removal to transfer prepetition lawsuits and other Civil Actions pending in courts outside the Southern District of New York to the Southern District for continued litigation. ABIZ wants to keep its transfer option, available to it under Bankruptcy Rule 9027(a), open until the confirmation of a Chapter 11 plan. Judy G.Z. Liu, Esq., at Weil Gotshal & Manges LLP in New York, says that ABIZ management has not made it a priority to thoroughly examine each individual Civil Action to determine the feasibility or benefit of removal. In short, other matters took priority. Ms. Liu relates that, as of the Commencement Date, the ABIZ Debtors were parties to approximately 15 civil actions and proceedings in a variety of state and federal courts. These Civil Actions assert employment discrimination, commercial litigation, and breach of contract claims. Ms. Liu points out that the ABIZ Debtors require adequate time to review their records to determine whether they should remove any of the Civil Actions. Because they are parties to approximately 15 lawsuits, and because their key personnel who will have input in assessing these lawsuits are also actively involved in their reorganization, the ABIZ Debtors require additional time to consider any benefit that may result from filing notices of removal in the Civil Actions. The ABIZ Debtors believe the proposed time extension will provide sufficient additional time to allow them to exercise sound business judgment. Without the extension, the ABIZ Debtors believe they will not have enough time to consider the removal of the Civil Actions adequately. A hearing of the motion is scheduled on July 2, 2002, and Judge Gerber grants a short-term extension through the conclusion of that hearing. ----------------------------------------------------------------- [00087] DEBTORS' MOTION FOR JOINT ADMINISTRATION OF CASES ----------------------------------------------------------------- See prior entry at [00014]. The Debtors sought and obtained entry of an order directing joint administration of the chapter 11 cases commenced by: * Adelphia Business Solutions Operations, Inc., * Adelphia Business Solutions, Inc., * Adelphia Business Solutions of Atlantic, Inc., * Adelphia Business Solutions of Florida, Inc., * Adelphia Business Solutions of Kentucky, Inc., * Adelphia Business Solutions of Tennessee, Inc., * Adelphia Business Solutions of Vermont, Inc., * Adelphia Business Solutions Long Haul, L.P., * Adelphia Business Solutions International, L.L.C., * Adelphia Business Solutions Investment East, L.L.C., * Adelphia Business Solutions Investment, L.L.C., * Adelphia Business Solutions, L.L.C., * Adelphia Business Solutions of Jacksonville, Inc., * Adelphia Business Solutions of Louisiana, Inc., * Adelphia Business Solutions of Louisiana, L.L.C., * Adelphia Business Solutions of Nashville, L.P., * Adelphia Business Solutions of South Carolina, Inc., and * Adelphia Business Solutions of Virginia, L.L.C.; with ABIZ's lead bankruptcy case for procedural purposes only, pursuant to Rule 1015(b) of the Federal Rules of Bankruptcy Procedure. Judge Gerber orders that all pleadings and papers filed in these jointly administered cases be captioned: UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK --------------------------------x : In re : Chapter 11 Case No. : 02-11389 (REG) ADELPHIA BUSINESS SOLUTIONS, : INC., et. al., : : (Jointly Administered) Debtors. : : --------------------------------x Judge Gerber makes it clear that nothing contained in the Debtors' Motion or the Court's Order contemplates nor precludes a substantive consolidation of the Debtors' estates. Harvey R. Miller, Esq., at Weil Gotshal & Manges LLP in New York, says that these cases should be administered jointly because the business operations of the Debtors are interdependent and their general administration and operational expenses are shared. Entry of an order directing joint administration of these cases will obviate the need for duplicative notices, applications, and orders, and thereby save considerable time and expense for the Debtors and their estates. ----------------------------------------------------------------- [00088] CENTURY'S MOTION TO EXTEND TIME TO COMPLY WITH RULE 1007 ----------------------------------------------------------------- Century Communications Corporation sought and obtained a 30-day extension of its time to comply with Rule 1007 of the Federal Rules of Bankruptcy Procedure. That Rule, as supplemented by a Local Bankruptcy Rule 1007-2, requires delivery of lists of a debtor's creditors, descriptions of the debtor's property and other materials traditionally delivered with a bankruptcy petition. Marc Abrams, Esq., at Willkie Farr & Gallagher, in New York, explains that Century is part of a vast corporate structure. To assemble the materials required will require the Debtor to locate the information from the voluminous books and records and complex accounting system of the Debtor and its various non-debtor affiliates. Due to the circumstances surrounding the filing of the Debtor's voluntary petition, the Debtor has been unable to assemble the required information in time to complete the Rule 1007 affidavit. Century estimates that the 30-day extension would provide sufficient time to locate relevant information. ----------------------------------------------------------------- [00089] DEBTORS' MOTION TO PAY PREPETITION CRITICAL VENDOR CLAIMS ----------------------------------------------------------------- See prior entry at [00043]. Motion granted. ----------------------------------------------------------------- [00090] ABIZ SURPASSES 500,000TH LOS, MAJOR INDUSTRY MILESTONE ----------------------------------------------------------------- CANONSBURG, Pennsylvania -- June 25, 2002 -- Adelphia Business Solutions (ABS) (Pink Sheets: ABIZQ), which has established a number of benchmarks during its history of more than a decade in the telecommunications business, recorded another significant achievement today when it surpassed its 500,000th active line on-switch (LOS). These LOS represent customers served via ABS' own switches and facilities, and the achievement reflects ABS' long-term investment in dense fiber optic networks and in high-capacity, inter-city connectivity. ABS has over 360,000 LOS in its 35 company-owned markets, over 50,000 LOS in its 14 company-managed markets, and over 90,000 LOS in its three joint partnerships. Surpassing the 500K LOS yardstick comes as a major accomplishment for the veteran organization, given the climate all telecom providers have experienced over the past 12 to 18 months. "A milestone like this is especially noteworthy in today's telecom environment," stated Bob Guth of ABS. "To reach this level of service stands as testimony to the fortitude and determination of ABS to proceed and, in fact, grow during this period of industry instability." Mr. Guth continued, "It reflects on the dedication of our customers, the talent of our employees and our corporate commitment to provide advanced technology and superior service today and for years to come. It also reflects the distinguishing trademark of ABS relative to other telecommunications carriers -- our patient construction of our own, widespread networks. " *** End of Issue No. 8 *** ------------------------------------------------------------------------- Peter A. Chapman peter@bankrupt.com http://bankrupt.com ------------------------------------------------------------------------- Recommended Reading: Professor Stuart Gilson's newest title, "Creating Value Through Corporate Restructuring: Case Studies in Bankruptcies, Buyouts, and Breakups." List Price: $79.95 -- Discounted to $55.96 at http://amazon.com/exec/obidos/ASIN/0471405590/internetbankrupt -------------------------------------------------------------------------