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Este informe no está disponible en español. CARIBBEAN BUSINESSAdelphia’s Plans Unaffected By Parent Company’s BankruptcyLocal Cable TV Operator Will Soon Start System Upgrade In San Juan As Part Of A Two-Year, $50 Million Improvement ProgramBY JOSE L. CARMONAOctober 10, 2002 Plans by Cable TV of Greater San Juan and Community Cablevision to reconstruct & upgrade their cable systems aren’t being affected by their parent company’s bankruptcy filing, Francisco Toste, Cable TV of Greater San Juan vice president & general manager, told CARIBBEAN BUSINESS. "Our plans continue; they haven’t been affected," said Toste. "We have to reconstruct & upgrade San Juan’s system, and we are about to do it." Adelphia Communications Corp., parent company of Cable TV of Greater San Juan and Community Cablevision, sought bankruptcy protection under Chapter 11 (reorganization) on June 25. It listed assets of $24.4 billion and debts of $18.6 billion in its bankruptcy petition. Adelphia’s bankruptcy case is the sixth largest in U.S. history. According to Toste, reconstruction of the San Juan cable system involves replacing the unidirectional equipment with bidirectional gear. This will allow the company to launch interactive services such as Internet via cable modems in 2003. "We can’t provide a specific timetable for when these services will be available, because they are still in the development stages. However, we will launch them sometime in 2003," said Toste. The system upgrade is part of a two-year, $50 million improvement program, noted Toste. The company continues to expand its local digital cable system amid strong competition from DirecTV. Cable TV of Greater San Juan and Community Cablevision provide service to 140,000 subscribers in Bayamon, Cataño, Carolina, Guaynabo, San Juan, Toa Alta, Toa Baja, and Trujillo Alto. Adelphia, the No. 6 U.S. cable TV operator, asked the U.S. Bankruptcy Court in Manhattan to extend its exclusive period to file a reorganization plan until April 21, 2003, claiming it needed more time to develop a plan with creditors and shareholders. The company contended the sheer size and complexity of the bankruptcy warranted an extension. On Monday Judge Robert Gerber granted the extension. The U.S. Bankruptcy Code gives bankrupt companies an exclusive right to file a reorganization plan within 120 days. Companies often request and courts routinely grant extensions. Adelphia’s 120-day exclusivity period was to expire later this month. Last week Adelphia founder John Rigas, sons Michael and Timothy (both senior executives), and two other company executives pleaded innocent on charges of conspiracy and securities, wire, and bank fraud. Adelphia’s problems began in March after the company disclosed it had guaranteed billions of dollars in loans to the Rigas family. This Caribbean Business article appears courtesy of Casiano Communications.
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