Adelphia Puts Assets in 7 Clusters for Sale

Adelphia Communications Corp., the nation’s fifth-largest cable television operator, said Tuesday that it planned to sell its assets in seven geographic clusters, including California, as it emerged from bankruptcy protection.

“By dividing the company into seven distinct strategic clusters, we believe we can maximize value for Adelphia’s wide range of creditors and other stakeholders,” said Chairman and Chief Executive William Schleyer.

The clusters were organized by geography and their ability to operate as stand-alone entities, according to the company.

They are California and the West; northern New England and eastern New York; Cleveland and the greater Ohio Valley; Florida and the Southeast; Virginia, Maryland, Colorado Springs, Colo., and Kentucky; Pennsylvania; and western New York and Connecticut.

Analysts and creditors have estimated the company’s value at $17 billion to $23 billion.

Adelphia filed a reorganization plan in February but agreed to investigate a possible sale at the urging of shareholders. It is accepting bids this month and plans to complete the bidding process by year’s end.

Adelphia filed for bankruptcy protection two years ago in New York after founder John W. Rigas and others were accused of looting the company and cheating investors out of billions of dollars. Rigas and one of his sons were convicted of fraud.