Chapter 11 Fails to Stem Adelphia’s Losses

30 December 2002

Despite enjoying protection since June under the umbrella of Chapter 11 bankruptcy status, cable giant Adelphia Communications announced a widening of its net losses in November.

In its monthly operating report filed last week with the US Bankruptcy Court in Manhattan, Adelphia reported a net loss of $111.5 million (€107.06m; £69.58m) or $0.44 per share. This compares with October’s deficit of $104.6m ($0.42 a share).

Cash and cash equivalents at November 30 were $426.7m, down from $471.2m at the beginning of the month. The numbers included an $86.2m expense for non-temporary impairment of investments and other assets.

Cashwise, Adelphia had $300 million available under its $1.5 billion debtor-in-possession loan facility; with $1 billion of availability subject to the company satisfying certain conditions.

Meantime, the federal investigation into the alleged depredations of Adelphia’s former controlling Rigas family continues. Three members of the Rigas clan, along with two other erstwhile executives, are arraigned on charges of conspiracy, securities fraud, self-dealing and bank fraud.

One of the accused, former vp of finance James R Brown has pleaded guilty to the charges against him and agreed to testify against his former colleagues – all of whom have entered ‘not guilty’ pleas.

Data sourced from: The Washington Post Online; additional content by WARC staff