Adelphia Recovery Trust Announces Settlement With Buchanan Ingersoll & Rooney PC
WILMINGTON, Del., June 27, 2012 /PRNewswire/ -- The Adelphia Recovery Trust (the "Trust") announced today that it has reached an agreement to settle its claims against the law firm of Buchanan Ingersoll & Rooney PC ("Buchanan"). Buchanan served as Adelphia's primary outside legal counsel for a number of years before Adelphia filed for bankruptcy protection in June 2002. Under the terms of the settlement, which is subject to the approval of United States Bankruptcy Judge Robert E. Gerber, Buchanan will make an initial payment of $20 million to the Trust, and the Trust will participate with other parties that have asserted claims against Buchanan in a binding Alternate Dispute Resolution proceeding (the "ADR Proceeding") in which an additional $40 million shall be distributed. The Trust will seek an award of a substantial portion, if not all, of the $40 million in the ADR Proceeding but the Trust cannot predict how much, if any, of the $40 million will be awarded to the Trust.
The settlement will not resolve the FPL, Prestige, Goldman, or avoidance actions described in Item 3 of the Trust's 2011 Form 10-K. A copy of the Trust's motion for settlement approval pursuant to Bankruptcy Rule 9019 will be available in the "Important Documents Adelphia Recovery Trust" section of Adelphia's website at www.adelphiarestructuring.com.
The Trust in its discretion may retain some or all of the settlement proceeds for funding its operations, including expenses incurred to maintain and administer the Trust and prosecute the Trust's remaining pending causes of action, all subject to the terms and conditions of the Plan and the Declaration of Trust. No decision has been made by the Trust as to the amount or timing of any distributions to Trust interest holders.
About Adelphia Recovery Trust
The Adelphia Recovery Trust is a Delaware Statutory Trust formed pursuant to the First Modified Fifth Amended Joint Chapter 11 Plan of Reorganization of Adelphia Communications Corporation and Certain Affiliated Debtors, which became effective February 13, 2007. The Trust holds certain litigation claims transferred pursuant to the Plan against various third parties and exists to prosecute the causes of action transferred to it for the benefit of holders of Trust interests.
This press release contains forward-looking statements. All statements (other than statements of historical fact) contained in this release, including statements that address future plans, goals, expectations, activities, events or developments are forward-looking statements. The Trust has tried, where possible, to use words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "forecast," "initiative," "objective," "goal," "project," "outlook," "priorities," "target," "evaluate," "pursue," "seek," "potential," "continue," "designed," "impact," "may," "would," "could," "should," "will" and other similar expressions to identify forward-looking statements. Forward-looking statements are based on current expectations and are subject to substantial risks, uncertainties and other factors, many of which are beyond our control. The Trust cannot guarantee that any forward-looking statement will be realized, as actual results may differ materially from those identified or implied in any forward-looking statement. Among the factors that may cause actual results to differ materially are the following: changes in or interpretations of laws, regulations and policies; and the tax effects of various aspects of the Plan and the Trust. All forward-looking statements speak only as of the date they were made. The Trust does not undertake a duty to publicly update or revise such forward-looking statements or other information contained herein, whether as a result of new information, subsequent events, circumstances, changes in expectations or otherwise.
SOURCE Adelphia Recovery Trust