Adelphia liquidating trust agreement
At one point, liquidation had been a distinct possibility—the fifth-largest cable company in the nation, after all, had billions of dollars in assets that could be sold off.“There was a lot of anxiety about whether the business was fixable or not,” says Wittman.STOCK PURCHASE AGREEMENT THIS AGREEMENT, dated April 9, 1999 by and between the Shareholders of Harron Communications Corp.("Harron") listed on the signature page hereto (individually a "Shareholder" and collectively "Shareholders"), and Adelphia Communications Corporation, a Delaware corporation ("Buyer").Yet the decision was made to salvage the company—clean up the toxic remnants of fraud and get Adelphia back in the good graces of customers, investors, and even employees, who had been demoralized by the scandal.
Even after seven months, an interim management team had failed to improve the company’s poor performance, and now a new CEO was assembling a new team.
On review, the District Court accepted the Bankruptcy Court's determination that the Plan was substantially consummated and accordingly found Appellants subject to a presumption that their appeals were equitably moot.
at 483, under which we examine conclusions of law de novo and findings of fact for clear error, see Highmark Inc.
Answering “no,” the court explained that “known” creditors of a Chapter 11 debtor—a group that includes both “claimant[s] whose identity is actually known to the debtor [and] claimant [s] whose identity is reasonably ascertainable”—must be afforded “actual written notice of the bankruptcy filing and the bar date.” BGI I, 476 B. We review a district court's dismissal on grounds of equitable mootness for abuse of discretion, id. These cases suggest that the doctrine of equitable mootness has already been accorded broad reach, without apparent ill effect.
In its memorandum opinion, the court first considered whether, under Bankruptcy Rule 2002, gift card holders were individually entitled to “actual notice” of the Bar Date. By contrast, “unknown” creditors—whose identity is not reasonably ascertainable by the debtor—are entitled only to “constructive notice,” which may be provided through notice by publication. Determining that gift card holders were “unknown” creditors because their “status as possible creditors was not known or reasonably ascertainable,” the court held that publication of the Bar Date once in The New York Times provided Appellants all the notice to which they were entitled. The doctrine “requires the district court to carefully balance the importance of finality in bankruptcy proceedings against the appellant's right to review and relief.” Id. Indeed, to the contrary: several of our sister circuits have applied the doctrine in the liquidation setting and did so with no more than cursory discussion.