Red Ink Flows Again at US Cable Firm Adelphia

30 September 2003

Adelphia Communications – the US cable company at the centre of a criminal investigation – has posted a monthly operating loss for the first time since April.

The firm filed for bankruptcy protection last year amid a fraud scandal involving its controlling clan, the Rigases. Adelphia founder John Rigas plus sons Michael and Timothy are charged with looting the firm of hundreds of millions of dollars. They are due to stand trial early next year.

The company's latest filing with the bankruptcy court shows it made an operating loss of $5.9 million (€5.2m; £3.6m) in August after three months of operating profits.

The group made a net loss for the month of $40.3m on revenue of $302.8m, compared with July's $38.1m deficit on $292m turnover. At the end of August, it had assets worth $53 billion and liabilities of $49.7bn.

The filing also reveals that some Adelphia affiliates owned or controlled by the Rigases have handed around $2.6m to the clan to help with legal expenses. In August, the bankruptcy court ruled that these companies could pay up to $15m to help the family fight the allegations.

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