Adelphia Business files for Chapter 11

New York, March 27 - Adelphia Business Solutions, Inc. said it made a voluntary Chapter 11 filing in the U.S. Bankruptcy Court for the Southern District of New York.

The filing covers the company itself and some wholly owned subsidiaries.

The Coudersport, Pa. communications company said it has reached agreement with Adelphia Communications Corp. and a Rigas family affiliate to provide up to $135 million of debtor-in-possession financing. The DIP financing, which is subject to bankruptcy court approval, will be used to fund daily operation of the business.

Adelphia Business said it is in "advanced negotiations" with the holders of its 12¼% senior secured notes due 2004.

Explaining the decision to file for Chapter 11, Adelphia Business said it had concluded a financial restructuring was the "most viable alternative" for resolving its financial difficulties.

It said it made the bankruptcy filing because of the "virtual shutdown of the telecommunications capital markets and the decline in the telecommunications industry generally."

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