Adelphia’s woes worry Mainers Communities examine cable contracts

PORTLAND – Adelphia Communications’ bankruptcy filing has caused Maine towns and cities to scrutinize contracts with the national cable television company, which is the state’s largest cable company.

Adelphia filed for Chapter 11 bankruptcy protection last week after a string of revelations about an estimated $3.1 billion in off-the-books debt, accounting problems and questionable deals by its founding family.

“The questions are going to start coming in fast and furious. What everybody has feared has happened,” said Pat Scully, a lawyer with Bernstein Shur Sawyer and Nelson who reviewed and negotiated Adelphia cable franchise contracts for about 50 municipalities in Maine.

Adelphia has 190,000 cable customers in northern and coastal Maine, including areas around Bangor, Lewiston, Waterville, Augusta, Calais and Madawaska. In southern Maine, it has franchises in Windham and Kennebunk.

Time Warner and Adelphia serve most of Maine’s 317,000 cable subscribers.

Local franchise agreements with Adelphia vary from town to town, but most have 10- to 15-year contracts with the cable provider.

The company has already said it overstated cash flow figures and subscriber totals and expects to restate three years of financial reports. The bankruptcy will allow it to continue serving customers in more than 3,500 communities.

Adelphia is cooperating with investigations by the Securities and Exchange Commission and federal grand juries in Pennsylvania and New York.

Mark Adams, assistant city manager in Auburn, said he is monitoring Adelphia’s bankruptcy proceedings closely, but he does not expect any changes in the city’s franchise agreement or service.

If Adelphia announces a transfer or sale of ownership to another cable provider, Auburn’s franchise agreement with the company allows the city to review that sale before proceeding with its contract, he said.

“We’ve got quite a few provisions in the contract that, if they’re failing to perform, we can revoke the agreement,” Adams said.

In Bangor, City Solicitor Norman Heitmann said city officials are monitoring the situation, but they have no reason to expect the company will default on its franchise agreement.

“We’re keeping close tabs on it,” said Heitmann, noting that Bangor’s agreement with Adelphia was identical to those of the other 14 communities in the Penobscot-Downeast Cable Television Consortium.