By Mark Scott
Coudersport, PA – Various news sources are reporting that Adelphia Communications has completed financing arrangements that will provide the company with $1.5 billion. Citicorp's Salomon Smith Barney and J.P. Morgan are reportedly behind the financing package.
It's expected Adelphia will file for bankruptcy Monday. The new financing is designed to keep the company running while it reorganizes.
In other developments, Adelphia is trying to reassure local governments across the country that it will continue to provide high quality cable television service and programming. The company made the pledge in a letter sent to government and agencies it deals with.
The New York Times reports the letter is in response to a Los Angeles official who is threatening to revoke Adelphia's franchise rights there.
Also, Adelphia's fiscal problems continue to affect the Buffalo Sabres hockey team. Sabres owner John Rigas is Adelphia's founder and former chief executive. The city of Buffalo says the team owes the city $1.5 million.
Lawyers for the city met with bankruptcy attorneys Thursday to come up with a plan of action to collect the money. But attorneys say that may be a difficult process. The city owes the Sabres $300,000.
The National Hockey League has assumed operational control of the Sabres, though Rigas technically retains ownership. NHL Commissioner Gary Bettman said the league continues to seek a local buyer to purchase and operate the club in Buffalo.