Adelphia Creditors Appeal Settlement OK

Creditors of Adelphia Communications Corp. appealed a bankruptcy judge’s approval of a $715-million settlement of a suit brought by federal regulators.

William Huff’s W.R. Huff Asset Management Co., one of the cable operator’s largest creditors, and Adelphia’s committee of unsecured creditors filed two separate notices of appeal with the U.S. Bankruptcy Court in New York this week. Huff and the committee have said the settlement is too harsh on Adelphia.

On June 13, U.S. Bankruptcy Judge Robert Gerber affirmed his May approval of the pact between Adelphia, federal regulators and company founder John Rigas and his sons. The agreement spares Adelphia from criminal prosecution and allows it to move forward with its proposed sale to Time Warner Inc. and Comcast Corp.