Adelphia Gets Extension for Los Angeles Cable

The city of Los Angeles extended for 45 days the five local cable franchises held by Adelphia Communications Corp. after the its current contract expired.

City officials said the extension would give both parties more time to hammer out a new agreement, which would include a schedule for upgrades of Adelphia’s cable networks for the delivery of digital services such as high-speed Internet access.

After Adelphia filed for Chapter 11 bankruptcy protection in June, the city threatened to revoke the franchises if service deteriorated or the company failed to pay franchise fees. The city said Adelphia, the city’s second-largest cable provider, with 250,000 customers, paid its latest quarterly fees of $1.7 million by the July 31 deadline.

As part of the franchise renewal process, a city audit determined that Adelphia owes $3 million in back fees for a three-year period from 1996 to 1999. Adelphia says it only owes $2 million.

As a condition of the franchise extension Friday, Adelphia agreed to put $2 million in escrow as a good-faith gesture.

“Our tough stance has paid off,” said City Atty. Rocky Delgadillo, who had threatened to revoke the franchises. “I’ve been assured service will not be interrupted during the 45 days.”