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
in February.

That means if the telephone company has to file for Chapter 11, it shouldn't
dramatically crunch the cable company.

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