Legal Question in Business Law in California

Bankruptcy guidlines

My media communication service(internet and cable TV service) iis currently in bankruptcy status, (Adelphia communications)or so I had thought, for over 2 years now. Since declaring bankruptcy, I have recieved two substancial rate increases for services.It has been said that one of two major cable companies will be taking over, but that was 2 years ago. seeing as only one company can serve this area and there are no other choices (monopoly)How can a company continue to increase rates while under bankruptcy ?


Asked on 4/07/06, 12:34 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Bankruptcy guidlines

Assuming this is a Chapter 11 bankruptcy, I'd say the company is probably free to manage its affairs -- including pricing decisions -- almost in the same manner and with the same freedom (or lack thereof) as before bankruptcy. Of course, cable companies are regulated public utilities, and their rates are regulated, usually, I think, by the municipalities they serve (cities and counties).

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Answered on 4/07/06, 1:27 pm


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