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News
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Adelphia may delay Chap. 11
Nation's sixth-largest cable operator to file for bankruptcy protection in New York, source says.
June 24, 2002: 12:53 PM EDT

NEW YORK (CNN/Money) - Adelphia Communications Corp. could seek Chapter 11 bankruptcy protection Monday but the nation's sixth-largest cable operator will likely file later this week, a source familiar with the situation told CNN/Money.

Adelphia still is working out a financing agreement that will help the company once it reorganizes. Adelphia on Friday clinched a $1.5 billion loan arranged through Salomon Smith Barney and J.P. Morgan, another source familiar with the situation said.

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But when it does seek bankruptcy protection, Adelphia likely will file in New York, the source said.

Coudersport, Pa.-based Adelphia, the sixth-largest cable operator in the United States, has long been expected to file. The company is the subject of a Securities and Exchange Commission and federal grand jury investigation into its finances. In March, it was disclosed that the Rigas family engaged in off-the-book borrowings to use Adelphia cash or assets to invest in a golf course and expand its personal cable assets. Last month, Adelphia ousted the Rigases -- including co-founder and ex-CEO John Rigas -- from its board.

Adelphia on June 20 failed to make interest and dividend payments totaling almost $30 million, on top of missed $51 million interest payment from a week before. The company has defaulted on $7 billion in debt and was booted off the Nasdaq when it failed to file it annual financial statement.

Adelphia declined comment. J.P. Morgan and Salomon parent Citigroup could not be reached for comment.  Top of page






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