Rigas Clan Cedes Control of Ailing Adelphia

24 May 2002

The Rigas family has agreed with other shareholders and creditors to hand over control of beleaguered cable TV company Adelphia Communications – the nation’s sixth largest.

Former chairman/president/ceo John Rigas will receive a pay-off of $4.2 million (€4.57m; £2.88m) in pension rights after agreeing Thursday to surrender control of the media company he founded fifty years ago.

The group also revealed that the off-balance sheet loans that brought about the downfall of the Rigas clan now amounted to $3.1bn, far more than the $2.3bn that it disclosed two months ago. Rigas and his three sons have now quit the board.

The agreement paves the way to a resolution of the immediate crisis engulfing Adelphia. It also persuaded the Nasdaq stock market to reopen trading in the company's shares

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