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Adelphia phone unit defaulting - Broadcasting & Cable

Adelphia phone unit defaulting

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MSO Adelphia Communications Corp.'s commercial-telephone unit is finally starting to
crumble.

Adelphia Business Solutions said it won't make a scheduled $15.3 million
interest payment it owes on some of its bonds. The interest payment was due
Friday, and the company said in a Securities and Exchange Commission filing that Adelphia Business will default
if it doesn't make the payment when a 30-day grace period expires March 31.

Adelphia Business started as a subsidiary of its cable-operator parent, but
Adelphia Communications spun it off to shareholders last month. That means if
the telephone company has to file for Chapter 11, it shouldn't dramatically
crunch the cable company.

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