ADELPHIA PAYS DEBT, BUT CITY WANTS MORE.Byline: Harrison Sheppard Staff Writer Adelphia Communications has paid $2.6 million in overdue franchise fees to the city, claiming it has now settled all its old debts - but Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. officials say the company still owes $1.2 million more. The debt was from underpayment of franchise fees discovered in a city audit last year. Adelphia disputes the amount it owes and claims the $2.6 million should settle its debt. ``Based on our calculations, we have paid the amount that is due,'' said Thomas Carlock, an Adelphia vice president. But City Attorney Rocky Delgadillo Rockard John "Rocky" Delgadillo (born July 15 1960) is the current City Attorney of Los Angeles, California. Career
``We will continue to press Adelphia to pay the rest of the fees it owes the city, as well as roll back rates for its customers,'' Delgadillo said in a written statement. Carlock said the agreement with the city essentially called for the payment of 5 percent of gross revenue in exchange for having access to the public right of way for its cable lines. The dispute centers on the items included in the calculation of that gross revenue. Acknowledging there are additional funds in dispute, Adelphia also is planning to put $624,000 into an escrow account until the dispute can be resolved, as its agreement with the city requires for disputes, Carlock said. The city has also been trying to force Adelphia to roll back a rate increase it imposed on Los Angeles customers last year. Adelphia has appealed the city's effort to the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. . Councilman Jack Weiss Jack Weiss, is a member of the Los Angeles City Council representing the 5th district. Weiss was elected in 2001 and reelected in 2005. The 5th district includes parts of the Westside and the San Fernando Valley. , who has been an outspoken critic of Adelphia, said the debt payment was a good gesture from the company, but a better one would be dropping its appeal. ``I'm hoping today is a sign we have a new Adelphia, and they will reconsider the old Adelphia's rate increases as well,'' Weiss said. The troubled firm, which has had top officers accused of financial mismanagement Financial mismanagement is management that, deliberately or not, is handled in a way that can be characterised as "wrong, bad, careless, inefficient or incompetent" and that will reflect negatively upon the financial standing of a business or individual. , is currently in bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party . The company has since replaced its national and Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, management teams, and Carlock said he believes the company could emerge from bankruptcy by the second half of 2004. Harrison Sheppard, (213) 978-0390 harrison.sheppard(at)dailynews.com |
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