Adelphia Files Modifications to Fifth Amended Plan of Reorganization

Adelphia Files Modifications to Fifth Amended Plan of Reorganization

GREENWOOD VILLAGE, Colo., Oct. 11 /PRNewswire-FirstCall/ -- Adelphia Communications Corporation today filed a further modified draft of its Fifth Amended Joint Chapter 11 Plan of Reorganization and a plan support agreement amending the global settlement reached earlier by Adelphia, its Official Committee of Unsecured Creditors, as well as several ad hoc committees and significant individual bond funds (the "Plan Support Agreement") with the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court"). Adelphia expects to file a revised draft of the related Second Disclosure Statement Supplement to its Fourth Amended Disclosure Statement with the Bankruptcy Court that reflects the modifications to the Fifth Amended Plan shortly.

Adelphia and the Official Committee of Unsecured Creditors are seeking an order of the Bankruptcy Court approving the revised draft of the Disclosure Statement Supplement as containing "adequate information" to enable Adelphia's Chapter 11 bankruptcy creditors and equity holders to make an informed judgment about the modified draft of the Fifth Amended Plan. The Bankruptcy Court commenced the hearing on the Disclosure Statement Supplement on September 12, 2006. The hearing is currently scheduled to continue on Friday, October 13, 2006.

The modified draft of the Fifth Amended Plan reflects an agreement, embodied in the Plan Support Agreement, to extend the date by which the Fifth Amended Plan must be consummated to December 22, 2006 and to make certain modifications to the Fifth Amended Plan. Under the terms of the modified draft of the Fifth Amended Plan, if the ACC Senior Notes Class accepts the modified draft of the Fifth Amended Plan (or holders of ACC Senior Notes holding specified amounts of ACC Senior Notes vote or are deemed to vote in favor of the Plan), an additional approximately $50 million of value (for a total of up to approximately $1.13 billion) would be transferred from the recoveries otherwise payable to the holders of Arahova Notes to the creditors of Adelphia Communications, the parent corporation, and the deemed value of the Class A common stock of Time Warner Cable Inc. held by Adelphia would be increased to $5.4 billion. If the ACC Senior Notes Class does not accept the modified draft of the Fifth Amended Plan (or vote or be deemed to vote in the manner required in the modified draft Fifth Amended Plan), the deemed value of Class A common stock of Time Warner Cable Inc. held by Adelphia would be $5.1 billion. The modified draft of the Fifth Amended Plan also provides for an increase in the potential changes in the deemed value of the Time Warner Cable stock as a result of the post-closing 60 day market test from 15% to 20%.

Adelphia and the Official Committee of Unsecured Creditors remain co-proponents of the modified draft of the Fifth Amended Plan. In addition, the two bank administrative agents with which settlements have been reached will continue to be co-proponents of the modified draft of the Fifth Amended Plan with respect to the treatment of bank claims under the credit agreements for which they are agents.

Adelphia's proposal and prosecution of confirmation of the modified draft of the Fifth Amended Plan still is subject in all respects to entry of an order approving the Disclosure Statement Supplement, as well as Bankruptcy Court authorization for Adelphia to propose and seek votes in respect of the modified draft of the Fifth Amended Plan. Absent entry of such an order and authorization, Adelphia's filing of the modified draft of the Fifth Amended Plan shall not be deemed to be a proposal by Adelphia or its subsidiaries with respect to the proposed treatment of any claims against or equity interests in Adelphia or its subsidiaries. If this order is entered and such authorization is granted, Adelphia, the Official Committee of Unsecured Creditors and the relevant bank administrative agents will begin the process of soliciting creditors and equity holders to vote on the modified draft of the Fifth Amended Plan.

The parties to the Plan Support Agreement, including the holders of approximately $625 million principal amount of ACC Senior Notes who previously were not parties to the initial global settlement, have agreed, among other things, to vote in favor of the modified draft of the Fifth Amended Plan and to not take any action detrimental to the confirmation of the modified draft of the Fifth Amended Plan.

Copies of the modified draft of the Fifth Amended Plan and the Plan Support Agreement are available in the investor relations section of the Adelphia corporate website www.adelphia.com. This press release is not intended to be, nor should it be construed as, a solicitation for a vote on the modified draft of the Fifth Amended Plan.

About Adelphia

Prior to the sale of substantially all of the consolidated assets of Adelphia to Time Warner NY Cable LLC ("TW NY") and Comcast Corporation ("Comcast") on July 31, 2006 (the "Sale Transaction"), Adelphia Communications Corporation was the fifth largest cable television company in the country. It served customers in 31 states and offered analog and digital video services, high-speed Internet access and other advanced services over its broadband networks.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements. All statements regarding the Company's and its subsidiaries' and affiliates' expected sources and uses of cash, income tax positions, indemnification obligations and any post-closing purchase price adjustments related to the sale transactions with TW NY and Comcast, settlements with the Securities and Exchange Commission (the "SEC") and the United States Attorney's Office for the Southern District of New York (the "U.S. Attorney") and future course of the Company's pending bankruptcy proceeding, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will" and other similar expressions, are forward-looking statements. Such forward-looking statements are inherently uncertain, and readers must recognize that actual results may differ materially from the Company's expectations. The Company does not undertake a duty to update such forward-looking statements. Factors that may cause actual results to differ materially from those in the forward-looking statements include the potential costs and impacts of the transactions and obligations associated with the Sale Transaction, whether and on what timetable a plan of reorganization under Chapter 11 of the Bankruptcy Code will be confirmed and consummated, whether the transactions contemplated by the settlements with the SEC and the U.S. Attorney and any other agreements needed to effect those transactions are consummated, the Company's pending bankruptcy proceeding, results of litigation against the Company, results and impacts of the sale of the Company's assets and those discussed under Item 1A, "Risk Factors," in the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2006 and in the Company's Second Disclosure Statement Supplement, filed with the Bankruptcy Court on September 27, 2006, which is available in the investor relations section of the Company's website at www.adelphia.com. Information contained on the Company's Internet website is not incorporated by reference into this press release. Many of these factors are outside of the Company's control. Contacts:

FCMN Contact: paul.jacobson@adelphia.com

Source: Adelphia Communications Corporation

CONTACT: Media, Paul Jacobson, +1-303-268-6426, or Investor Relations,
Mark Spiecker, +1-303-268-6545, both of Adelphia Communications Corporation

Web site: http://www.adelphia.com/

Company News On-Call: http://www.prnewswire.com/comp/010150.html

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