Time Warner Cable could begin trading shares within a two-week period if a U.S. Bankruptcy judge approves the connected bankruptcy plan for Adelphia Communications.
Adelphia, which has a 16 percent stake in Time Warner Cable, will use it to pay off i
ts creditors as part of the 2005 deal for Adelphia's assets. Judge Robert Gerber of the U.S. Bankruptcy Court could make a ruling this week.
When the distribution of the shares takes place, Time Warner (TWX) will probably then register them with the New York Stock Exchange to prepare for their being offered to the public.
"Trading on the NYSE could begin as early as January 5, 2007," Spencer Wang, an analyst at Bear Stearns, wrote on Monday. He added that it looks like there is sufficient agreement by creditors on the plan to go forward.Time Warner Cable originally filed for an initial public offering with the U.S. Securities and Exchange Commission, but with the bankruptcy suddenly moving forward quickly, another means of floating the offering will probably be taken. An IPO would bring greater expenses to creditors via transaction costs, making it a less desirable means as well.
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