Adelphia Recovery Trust Announces $167.5 Million Settlement With Deloitte & Touche

WILMINGTON, Del., Aug. 3 /PRNewswire-FirstCall/ -- The AdelphiaRecovery Trust announced today that it has reached a $167.5 millionsettlement of its claims against Adelphia's former auditor Deloitte &Touche LLP in the lawsuit entitled Adelphia Communications Corp. v.Deloitte & Touche LLP, No. 000598 (Pa. Court of Common Pleas, Phila. Cty).Adelphia's claims against Deloitte & Touche were transferred to the Trustunder the terms of the First Modified Fifth Amended Joint Chapter 11 Planfor Adelphia Communications Corporation and Certain of its AffiliatedDebtors on February 13, 2007. Under the terms of the settlement, Deloitte & Touche will transfer the$167.5 million settlement payment into an interest-bearing escrow accountfor the benefit of the Trust pending approval of the settlement by UnitedStates Bankruptcy Judge Robert E. Gerber. The escrow funds, includinginterest, will be released to the Trust upon final approval of thesettlement. The settlement was negotiated under the supervision of the HonorableDaniel Weinstein (Ret.). The Trust stated through a spokesperson: "We arepleased with the settlement, which is among the largest settlements everreached between a public accounting firm and its audit client. Thissettlement does not resolve the Trust's claims against Adelphia's formerlenders and others who took part in a massive financial fraud perpetratedagainst Adelphia, and the Trust will continue to prosecute those claimsvigorously to conclusion." The Trust in its discretion may retain some or all of the settlementproceeds for funding its operations, including expenses incurred tomaintain and administer the Trust and prosecute Trust litigation, allsubject to the terms and conditions of the Plan and the Declaration ofTrust. No decision has been made as to the amount or timing of anydistributions to Trust interest holders. About Adelphia Recovery Trust Adelphia Recovery Trust is a Delaware Statutory Trust that was formedpursuant to the First Modified Fifth Amended Joint Chapter 11 Plan ofReorganization of Adelphia Communications Corporation and CertainAffiliated Debtors, which became effective February 13, 2007. The Trustholds certain litigation claims transferred pursuant to the Plan againstvarious third parties and exists to prosecute the causes of actiontransferred to it for the benefit of holders of Trust interests. Forward-Looking Statements This press release contains forward-looking statements. All statements(other than statements of historical fact) contained in this release,including statements that address future plans, goals, expectations,activities, events or developments, are forward-looking statements. We havetried, where possible, to use words such as "anticipate," "if," "believe,""plan," "estimate," "expect," "intend," "forecast," "initiative,""objective," "goal," "project," "outlook," "priorities," "target,""evaluate," "pursue," "seek," "potential," "continue," "designed,""impact," "may," "would," "could," "should," "will" and other similarexpressions to identify forward-looking statements. Forward-lookingstatements are based on current expectations and are subject to substantialrisks, uncertainties and other factors, many of which are beyond ourcontrol. We cannot guarantee that any forward-looking statement will berealized, as actual results may differ materially from those identified orimplied in any forward-looking statement. Among the factors that may causeactual results to differ materially are the following: the timing ofreceipt of funds by the Trust from the escrow account established inconnection with the Deloitte & Touche settlement; the risk that theescrowed funds will be returned to Deloitte & Touche and will not bereceived by the Trust due to any failure to obtain Bankruptcy Courtapproval or otherwise; the legal and other fees and expenses incurred inconnection with the Deloitte & Touche settlement, including unexpectedcosts and expenses; the legal fees and expenses associated with the othercauses of action and any related litigation or settlement; the costs of theadministration of the Trust; changes in or interpretations of laws,regulations and policies; the tax effects of various aspects of the Planand the Trust and the tax consequences to the Trust with respect to thereceipt of any settlement amount; the fact that the trustees of the Trusthave discretion with regard to the amount of distributions and the timingof distributions to holders of Trust interests, subject to the terms andconditions of the Plan and the Declaration; and the uncertain outcome ofthe litigation and other claims that constitute the principal assets of theTrust, including, among other things, as to whether the Trust is successfulin prosecuting its causes of action and the significant costs to obtain anysettlement or judgment. All forward-looking statements speak only as of thedate they were made. The Trust does not undertake a duty to publicly updateor revise such forward-looking statements or other information containedherein, whether as a result of new information, subsequent events,circumstances, changes in expectations or otherwise.