The nation's sixth largest cable provider plans to offload half its subscriber base amid a Securities and Exchange Commission investigation and the resignations of 50-year CEO John Rigas and his son, Executive Vice president and Chief Financial Officer Timothy Rigas.
The elder Rigas' resignation May 15 followed a string of bad news. Nasdaq removed the company's shares from the stock market pending a request for additional financial information. Timothy Rigas resigned the following day, May 16.
The Rigas family is the majority owner of Adelphia, which is being investigated for $2.3 billion in loans to Rigas-family partnerships that were not listed on the balance sheets. According to the family, some of the money was used to buy more Adelphia shares. The company disclosed the loans six weeks ago and said it plans to investigate the transactions.
To reduce its debt, Adelphia will also sell cable systems accounting for roughly half its subscriber base and make a restatement of its earnings going back to 1999.
The Interim CEO is Erland Kailbourne, an independent director with Adelphia and formerly the CEO of Fleet National Bank's New York region.
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