US cable group Adelphia Communications, which on Wednesday filed for Chapter 11 bankruptcy protection, disclosed it has debts of $18.6 billion (€18.9bn; £12.21bn) and assets – many of which are likely to be nonliquid – of $24.1bn.
The company, which listed 234 subsidiaries, enters the history books as the fifth-largest US bankruptcy ever. It is also under investigation both by federal authorities and the SEC. Of especial interest to the authorities is the $3.1bn of off-balance sheet private loans to Adelphia founder John Rigas and his family.
Earlier this week it was announced that Adelphia had secured further financing of $1.5bn to see it through a draconian restructuring whilst under Chapter 11 protection [WAMN: 26-Jun-02].
But the cash is conditional on approval of the court which will consider the matter Friday. Some of the new money will be used to upgrade the group’s planned digital and high-speed cable rollout.
Data sourced from: Financial Times; additional content by WARC staff