Human Capital & Careers

Adelphia Seeks $5.2M for Finance Team

Its reorganization still in limbo, the company warns of a ''mass exodus'' that would cost the estate ''millions of dollars.''
Stephen TaubFebruary 8, 2007

Adelphia Communications and its unsecured creditors have asked U.S. Bankruptcy Judge Robert Gerber to approve a $5.2 million package that would help retain key finance employees, according to the Associated Press.

The request follows the decision last month by U.S. District Judge Shira Scheindlin to put Adelphia’s $15 billion reorganization on hold, pending an appeal by dissident bondholders, added the AP.

In a court filing, Adelphia asserted that the $5.2 million is needed for some 66 employees, including 46 in the accounting department, who had planned to leave the company on February 28. Without those funds, the company elaborated, there may be a “mass exodus” of employees that would cost the estate “millions of dollars.”

The company also stressed that current employees are better situated to prepare quarterly and annual reports because they possess historical knowledge and understand Adelphia’s business operations. In addition, the company reportedly warned that relying on outside contractors might lead to significant costs and delays.

Judge Gerber will hear Adelphia’s request on February 13, according to the AP.

4 Powerful Communication Strategies for Your Next Board Meeting