Adelphia Lenders Win Bid to Toss $4 Billion in Claims
Hundreds of banks that are accused of playing a role in the collapse of Adelphia Communications Corp. have prevailed in their efforts to strike more than $4 billion in claims in a lawsuit brought by the company’s creditors, Bankruptcy Law360 reported yesterday. The cable company’s creditors, represented by the Adelphia Recovery Trust, are accusing 380 commercial and investment banks - including Citigroup Inc., Deutsche Bank and Bank of America Corp. - of looking the other way while Adelphia’s founding family looted the company of over $2 billion. Their 537-page amended complaint, filed last October, asserted 57 claims against the defendants, including claims to recover billions of dollars in loan obligations owed the banks by Adelphia’s subsidiaries.

