Condensed Balance Sheets (USD $)	Sep. 30, 2011	Dec. 31, 2010
Assets
Cash and cash equivalents	$ 77,093,337	$ 21,887,750
Temporary investments	0	64,808,133
Prepaid assets	824,219	68,613
Note and accrued interest receivable	6,461,347	6,168,829
Total assets	84,378,903	92,933,325
Liabilities and net assets
Accrued expenses	1,084,705	1,886,181
Total liabilities	1,084,705	1,886,181
Contingencies
Net assets	83,294,198	91,047,144
Total liabilities and net assets	$ 84,378,903	$ 92,933,325

Condensed Statements of Operations (USD $)	3 Months Ended		9 Months Ended
Condensed Statements of Operations (USD $)	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Revenues
Interest income	$ 115,959	$ 165,150	$ 381,664	$ 475,027
Total revenues	115,959	165,150	381,664	475,027
Operating expenses
General and administrative expenses	339,011	407,107	1,449,601	1,648,442
Professional expenses - litigation	2,121,858	7,372,630	6,037,362	22,355,306
Professional expenses - administrative	170,953	208,456	647,647	525,943
Total operating expenses	2,631,822	7,988,193	8,134,610	24,529,691
Net loss	$ (2,515,863)	$ (7,823,043)	$ (7,752,946)	$ (24,054,664)

Condensed Statements of Cash Flows (USD $)	9 Months Ended
Condensed Statements of Cash Flows (USD $)	Sep. 30, 2011	Sep. 30, 2010
Operating activities
Net loss	$ (7,752,946)	$ (24,054,664)
Adjustments to reconcile net loss to net cash used by operating activities consisting of changes in operating assets and liabilities:
Prepaid assets	(755,606)	398,427
Note and accrued interest receivable	(292,518)	(292,518)
Accrued expenses	(801,476)	(2,680,914)
Net cash used by operating activities	(9,602,546)	(26,629,669)
Investing activities
Sale (purchase) of temporary investments and accrued interest	64,808,133	(75,040,926)
Net cash provided (used) by investing activities	64,808,133	(75,040,926)
Net change in cash and cash equivalents	55,205,587	(101,670,595)
Cash and cash equivalents, beginning of period	21,887,750	164,327,745
Cash and cash equivalents, end of period	$ 77,093,337	$ 62,657,150

Background

9 Months Ended

Sep. 30, 2011

Background

Background

1 Background

The Adelphia Recovery Trust (the “ART”) was formed as a Delaware statutory trust pursuant to that certain First Modified Fifth Amended Joint Chapter 11 Plan of Reorganization (the “Plan”) of Adelphia Communications Corporation (“Adelphia” or “ACC”) and certain of its subsidiaries (collectively the “Debtor”). The purpose of the ART is to prosecute the various causes of action transferred to the ART pursuant to the Plan (the “Causes of Action”) and distribute to the owners (the “Holders”) of the interests in the ART (“Interests”) the net proceeds of such Causes of Action (“Distributions”), according to the relative priorities established pursuant to the Plan, subject to the retention of various amounts to fund the prosecution of those Causes of Action and operations of the ART. Pursuant to the Plan, in addition to the Causes of Action, Adelphia transferred $25 million in cash to the ART, in connection with its formation, in order to fund the initial expenses of operation.

As set forth in the Plan, the ART is administered by five trustees (the “Trustees”) who are responsible for carrying out the purposes of the ART. Quest Turnaround Advisors, L.L.C. (“Quest”) is the plan administrator (in such capacity, the “Plan Administrator”) of Adelphia. Quest and Adelphia together have agreed to provide certain administrative services to the ART. In order to facilitate the provision of such administrative services, the ART has appointed Quest as the trust administrator of the ART (in such capacity, the “Trust Administrator”).

Basis of Presentation

9 Months Ended

Sep. 30, 2011

Basis of Presentation

Basis of Presentation

2 Basis of Presentation

The accompanying interim unaudited condensed financial statements of the ART have been prepared in accordance with generally accepted accounting principles in the United States of America for interim periods (“US GAAP”) and with the instructions to Form 10-Q. As such, they do not include all of the information and disclosures required by US GAAP for complete financial statements. In the opinion of the Trustees, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the interim unaudited condensed financial statements have been included. These condensed financial statements should be read in conjunction with the ART’s audited financial statements for the year ended December 31, 2010 included in its Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 4, 2011. Interim results are not necessarily indicative of the results for the complete fiscal year. The unaudited condensed balance sheet as of December 31, 2010 was derived from the audited financial statements for the year then ended.

Related Party Transactions

9 Months Ended

Sep. 30, 2011

Related Party Transactions

Related Party Transactions

3 Related Party Transactions

The Trust Administrator and Adelphia continue to provide administrative support to the ART including maintaining electronic data and paper documents used in prosecuting the Causes of Action, financial reporting and support for Distributions when they might occur (including maintenance of data related to the implementation of Plan provisions). These services have and will continue to be provided at no cost to the ART under the terms of various agreements between the Trust Administrator and Adelphia. The ART financial statements do not reflect any amounts for these services.

Causes of Action and Contingent Liabilities

9 Months Ended

Sep. 30, 2011

Causes of Action and Contingent Liabilities

Causes of Action and Contingent Liabilities

4 Causes of Action and Contingent Liabilities

Except as set forth below, there have been no material developments in the legal proceedings described in the ART’s Form 10-K as filed on March 4, 2011 or as updated in the ART’s Form 10-Qs filed on May 13, 2011 and July 29, 2011.

Causes of Action

FPL Litigation

The FPL action seeks to recover an alleged fraudulent transfer arising out of Adelphia’s repurchase of certain of its stock from FPL in January 1999 for $149.5 million. Pursuant to the Plan, the claims asserted in the FPL Litigation were transferred to the ART. On July 13, 2011, the Bankruptcy Court denied FPL’s motion for leave to amend its answer to add a new defense. FPL filed an appeal of the Bankruptcy Court’s July 13, 2011 decision. FPL’s appeal has been briefed by the parties and is awaiting decision by the District Court. At a status conference with the Bankruptcy Court, FPL advised the Bankruptcy Court of its intention to move to withdraw the reference to the Bankruptcy Court, which, if granted, would cause the action to be transferred to the District Court. On September 28, 2011, FPL filed its motion to withdraw the reference. The motion is pending before the District Court and is being briefed by the parties. The trial will be rescheduled after the District Court rules on the motion.

At this time, the ART cannot predict the outcome of the FPL Litigation or estimate the possible financial effect of this proceeding on the ART’s financial statements.

Sabres Litigation

The Sabres action involves claims for fraudulent conveyance, aiding and abetting breach of fiduciary duty, and equitable subordination or disallowance against Key Bank, N.A. (“Key Bank”), Fleet National Bank (“Fleet”), and HSBC Bank USA, N.A. (“HSBC”) (collectively, the “Sabres Banks”) arising from (i) Adelphia’s purchase of and payments on certain loans made by the Sabres Banks to a Rigas Family partnership that owned the Buffalo Sabres hockey team and (ii) John Rigas’ purchase of the team using Adelphia financing. HSBC has asserted counterclaims against Adelphia for “post-petition tort,” contribution and indemnification.

The District Court for the Western District of New York granted a permanent injunction against the ART’s prosecution of the fraudulent conveyance claims against the Sabres Banks and the Second Circuit affirmed that decision. The claims against Fleet were resolved as part of the settlement with Fleet and other defendants in the Bank Litigation.

An Order and Stipulation dated October 31, 2011 establishes a schedule for briefing and argument of the Sabres Banks’ motions to dismiss the ART’s remaining claims against Key Bank and HSBC and the ART’s motions to dismiss HSBC’s counterclaims.

At this time, the ART cannot predict the outcome of the Sabres Litigation against Key Bank and HSBC or estimate the possible financial effect of this proceeding on the ART’s financial statements. The ART also cannot predict the outcome of HSBC’s counterclaims or estimate the possible financial effect of this proceeding on the ART’s financial statements.

Contingent Liabilities

Litigation Indemnification Fund Litigation

Pursuant to the Third Modified Fourth Amended Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code for Century-TCI Debtors and Parnassos Debtors (the “JV Plan”), which became effective on July 31, 2006; the Plan, which became effective on February 13, 2007; and certain other orders entered by the Bankruptcy Court, litigation indemnification funds (each, a “LIF”) were created with funds provided by Adelphia to provide certain defendants in the Bank Litigation (see Plan) provisional and conditional reimbursement of legal fees and expenses expected to be incurred in connection with defending litigation involving certain credit facilities.

The LIF created under the JV Plan (the “JV LIF”), established in the initial amount of $10 million and held in an Adelphia account pending distributions as authorized by the ART, was created to fund certain allowable claims for indemnification arising under the Parnassos and Century-TCI prepetition credit facilities. Subject to certain conditions, the JV LIF is “evergreen”, i.e. the JV Plan provides that the JV LIF will be replenished by the ART under certain conditions, such as “upon the receipt . . . of net proceeds of any Designated Litigation” after first deducting any required distribution to the government.

The LIFs created under the Main Plan (the “Main Plan LIFs”) are fixed in amounts and not subject to replenishment. Because the JV LIF is evergreen, whereas the Main Plan LIFs are capped, the allocation of defense costs among the categories of LIFs is a matter of economic significance.

Certain entities (the “JV Claimants”) submitted formal claims that through September 30, 2011 aggregated approximately $26.9 million in excess of the $10.0 million initially deposited in the JV Litigation Indemnification Fund by Adelphia. Thus, claims against the JV LIF totaled approximately $36.9 million and certain of the JV Claimants indicated an intention to submit additional claims in the future. Adelphia and the ART asserted that the JV LIF claims were improper.

On November 13, 2008, certain of the JV claimants filed, or subsequently joined in, the Motion of the Bank of Nova Scotia, Citibank N.A. and The Ad Hoc Committee of Non-Agent Secured Lenders in the Parnassos and Century-TCI Facilities for Payment of Bank Lender Post Effective Date Fee Claims and to Compel Compliance of the Plan Administrator (defined in the JV Plan as Adelphia) and the Art with the Third Modified Fourth Amended Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code and the Century TCI Stipulation (the “LIF Motion”). Adelphia and the ART moved to disallow Bank Lender Post-Effective Date Fee Claims against the claimants.

The Bankruptcy Court heard argument of counsel on May 25, 2011, and stated that an evidentiary hearing would be required to resolve any JV LIF claims that may remain in dispute at the time of such hearing. Since May 25, 2011, the ART has resolved the claims of certain JV LIF claimants. The remaining claims against the JV LIF in the aggregate total approximately $15.4 million and the balance of the JV LIF as of the date of this report is approximately $2.7 million.

To the extent the Bankruptcy Court grants the LIF Motion as to any unresolved JV LIF claims, the Bankruptcy Court could require the ART to replenish the JV LIF in an amount that satisfies all unresolved claims while the dispute is still pending. Additionally, the ART may be required to replenish the JV LIF in an amount that satisfies all pending unresolved claims and returns the balance in the fund to $10.0 million. The ART has adequate liquidity to satisfy that obligation if required.

At this time, the ART cannot predict the outcome of the remaining proceedings or estimate the possible financial effect of these proceedings on the ART.

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2011

Fair Value of Financial Instruments

Fair Value of Financial Instruments

5 Fair Value of Financial Instruments

The ART invests in FDIC insured bank certificates of deposit (“CDs”). CD investments held by the ART as of December 31, 2010 matured in the first quarter of 2011. At maturity, the ART elected to re-invest in CDs with a maturity of 90 days or less when purchased. CDs with a maturity of 90 days or less when purchased are classified as cash and cash equivalents and those with a maturity exceeding 90 days are classified as temporary investments. The ART had no temporary investments as of September 30, 2011.

The fair value of the note receivable and accrued interest has been determined using unobservable inputs (i.e. Level 3, as defined in Accounting Standards Codification 820-10) and approximates $5.1 million as of September 30, 2011 and $4.5 million as of December 31, 2010. The fair value was derived by discounting to September 30, 2011 and December 31, 2010 the projected maturity value of the note including accrued interest. The projected maturity values, including interest were calculated using life expectancy tables. The discount rate is based on the yield on the notes issued by the life insurance companies underwriting the life insurance policies and various risk factors associated with the note.

The carrying values were approximately $6.5 million as of September 30, 2011 and approximately $6.2 million as of December 31, 2010. The note bears 8% simple interest and is recourse only to the proceeds of various life insurance policies on Mr. and Mrs. Leonard Tow totaling approximately $28 million.

Subsequent Events

9 Months Ended

Sep. 30, 2011

Subsequent Events

Subsequent Events

6 Subsequent Events

Events subsequent to September 30, 2011 have been evaluated through November 4, 2011, the date the accompanying financial statements were issued. Other than as discussed herein, there have been no subsequent events that would be material to the financial statements of the ART, including Cause of Action settlements or judgments or Distributions or decisions concerning future Distributions.

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2011
Document and Entity Information
Entity Registrant Name	Adelphia Recovery Trust
Entity Central Index Key	0001433669
Document Type	10-Q
Document Period End Date	Sep. 30, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	0
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3