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SEC Filings

S-4
AVALON CABLE OF MICHIGAN INC/ filed this Form S-4 on 04/01/1999
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            AVALON CABLE OF MICHIGAN HOLDINGS, INC. AND SUBSIDIARIES
 
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

 Legal Matters
 
   The Company is subject to the provisions of the Cable Television Consumer
Protection and Competition Act of 1992, as amended, and the Telecommunications
Act of 1996. The Company has either settled challenges or accrued for
anticipated exposures related to rate regulation; however, there is no
assurance that there will not be further additional challenges to its rates.
 
   In the normal course of business, there are various legal proceedings
outstanding. In the opinion of management, these proceedings will not have a
material adverse effect on the financial condition or results of operations of
the Company.
 
11. Related Party Transactions and Balances
 
   In November 1998, Avalon Michigan received $33,200 from Avalon Finance. In
consideration for this amount, Avalon Michigan executed a note payable to
Avalon Finance. The note matures on December 31, 2001. This note is recorded as
note payable-affiliate on the balance sheet at December 31, 1998. Interest
accrues at a rate of 4.47% per year, and is payable on December 31, 2001.
Accrued interest receivable of $102 has been recorded in connection with this
note at December 31, 1998. On December 10,1998, Avalon Michigan made a partial
payment of $18,130 against this note payable-affiliate to Avalon Finance.
 
   Avalon Michigan receives support services such as finance, accounting and
human resources from Avalon Cable LLC, a related party. All shared costs are
allocated on the basis of average time spent servicing each entity. In the
opinion of management, the methods used in allocating costs from Avalon Cable
LLC are reasonable; however, the costs of these services as allocated are not
necessarily indicative of the costs that would have been incurred by the
combined operations on a stand-alone basis. For the period ended December 31,
1998, the Company was allocated charges related to such services of $250. The
Company had a payable of $250 related to these services at December 31, 1998.
 
   At December 31, 1998, the Company had an accounts receivable-affiliate
balance of $247 with Avalon Cable LLC.
 
 
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