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SEC Filings

AVALON CABLE OF MICHIGAN INC/ filed this Form S-4/A on 05/28/1999
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 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, the Company received $33,200 from Avalon Cable Finance,
Inc. ("Avalon Finance"). In consideration for this amount, the Company 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, the Company made a
partial payment of $18,130 against this note payable-affiliate to Avalon

   The Company 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 New England.