Adelphia Creditors Ask Court to Reconsider Deal

Creditors of Adelphia Communications Corp., citing a Supreme Court decision overturning the conviction of accounting firm Arthur Andersen, asked a U.S. Bankruptcy Court judge to reconsider approval of the company’s $715-million settlement of a suit by federal regulators.

Adelphia has said the settlement is necessary because it shields the company from criminal prosecution. The Justice Department, which was a party to the settlement, agreed not to bring charges against Adelphia as part of the accord.

The company’s committee of unsecured creditors said the May 31 Supreme Court decision in the Andersen case showed that the government couldn’t file charges against Adelphia and that the settlement “should be reconsidered and vacated.”