Adelphia Asks Banks for $1.5bn to Fund Chapter 11 Lifeline

17 June 2002

Ailing US cable company Adelphia Communications, expelled from Nasdaq and in default of $7 billion (€7.41bn; £4.74bn) in bank debt, is touting its begging bowl around a number of banks in the hope they will stump up loans to the value of $1.5bn.

Such a sum would enable America’s sixth-largest cable group to continue operations after filing for Chapter 11 bankruptcy protection. More importantly, the loan would give it time to sell some of its cable network assets.

Among the stony faces contemplating Adelphia’s request are Citigroup’s Salomon Smith Barney, J P Morgan and General Electric. It could take up to two weeks before decisions are forthcoming and the company has declined to comment on its solicitations.

Meantime, the group and its former controlling shareholders, the Rigas family, are the subject of a probe by the Securities and Exchange Commission and two federal criminal investigations.

Data sourced from: Financial Times; additional content by WARC staff