Adelphia Unveils Audited Numbers for Three Years

24 December 2004

US cable network operator Adelphia Communications, currently sheltering under Chapter 11 bankruptcy protection, has filed three sets of audited accounts with the Securities and Exchange Commission. These cover the years 2001, 2002 and 2003.

According to Adelphia ceo William Schleyer, who took office after the ousting of the controlling Rigas family, the final filing of accounts reflects a "massive twenty-month effort" by accountants who sifted through millions of ledger entries in order to reach an accurate conclusion as to the group's true financial position.

Adelphia, America's fifth largest cable operator with over five million subscribers, filed for bankruptcy protection in June 2002 after shareholders uncovered a massive accounting fraud perpetrated by the Rigas clan.

Since when former chairman John Rigas (80) and his son Timothy (48), also a director, have been convicted on charges of conspiracy and fraud amounting to $3.2 billion (€2.37bn; £1.67bn). A second son, Michael (51), faces a retrial following the jury's failure to reach a verdict.

The audited accounts reveal that by the end of 2003, the group had reduced its net loss to $832 million - a notable turnround from the previous year's eyewatering deficit of $7.19bn.

As yet, nobody is predicting the numbers for 2004.

Meantime, Adelphia's directors and creditors have agreed a 'dual track' strategy, offering the group for sale either as a whole or by its constituent parts. It is also mulling the practicality of exiting Chapter 11 as an independent corporation.

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