Adelphia Communications Corporation
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It still exists as a corporate entity, continuing largely to settle ongoing financial obligations and litigation claims, Adelphia Communications Corporation as well as to consummate settlements with the SEC and the U.S. The potential financial damage to the creditors of Adelphia was over $150 million dollars.
Adelphia s long-distance telephone business with 110,000 customers in 27 states (telephone & long-distance services) was sold to Pioneer Telephone for about Adelphia Communications Corporation $1.2 million. A second Rigas son, Michael, former executive vice president for operations, was acquitted of conspiracy and wire fraud in 2005.
The name was taken off the stadium in 2002 after Adelphia missed a payment and subsequently filed for bankruptcy. Time Warner Cable was allowed to distribute Adelphia Communications Corporation approximately $6 billion in shares to Adelphia stakeholders and succeed Adelphia as a publicly traded corporation. The founders of Adelphia were charged with securities violations.
Rigas founded Adelphia with a $300 license in 1952, took the company public in 1986 and built it by acquiring other systems in the Adelphia Communications Corporation 1990s. Adelphia was not a well-known company in Nashville and had only a small presence in the area (since its subsidiary, Adelphia Business Solutions, a commercial telecommunications provider offered as an alternative to BellSouth) before, and even after, the naming rights were purchased.
However, jurors were deadlocked on certain counts, and Michael Rigas is scheduled for a second trial. WNSA was sold off in 2004 and is now WLKK.
It was built as the home of the Tennessee Titans. The company collapsed into bankruptcy in 2002 after it disclosed $2.3 billion in off-balance-sheet debt. Federal prosecutors proved that the Rigases used complicated cash-management systems to spread money around to various family-owned entities and as a cover for stealing $100 million for themselves.
Five officers were indicted and two (John Rigas and Timothy Rigas) were found guilty . In 1990, it launched Empire Sports Network, a regional sports network serving central and western New York.
The former Adelphia assistant treasurer Michael Mulcahey was acquitted of all criminal charges. John and Timothy Rigas started their prison sentence at the Federal Correctional Complex, Butner, near Raleigh, North Carolina, on August 13, 2007. It bought the NHL s Buffalo Sabres in 1997, and added a sports talk station, WNSA, in 2000. On the day John Rigas and his sons were arrested, the NHL seized control of the Sabres.
John received a sentence of 15 years and Timothy received 20 years. In addition to its cable interests, Adelphia had substantial interests in the sporting world. Adelphia Communications Corporation, named after the Greek word brothers , was the fifth largest cable company in the United States before filing for bankruptcy in 2002 as a result of internal corruption.
It was known as simply The Coliseum for four years before becoming LP Field in 2006. South Sea Company (1720) · Panic of 1890 (1890) · Salad oil (1963) · Carrian Group (1983) · Polly Peck (1990) · Bank of Credit and Commerce International (BCCI) (1990) · Barings Bank (1995) · Long-Term Capital Management (2000) · One.Tel (2001) · Enron (2001) · Adelphia (2002) · WorldCom (2002) · Tyco (2004) · Bayou Hedge Fund Group (2005) · Société Générale (2008) · Bear Stearns (2008) . The dispute mainly pits creditors of the parent company (Adelphia Communications Corporation) against the creditors of the various operating subsidiaries (primarily, Arahova, also known as Century Communications).
Empire Sports limped along until 2005. One previous marker of Adelphia s success before its bankruptcy included its 1999 purchase of the naming rights to a football stadium, Adelphia Coliseum in Nashville, Tennessee. Attorney. Adelphia s Chapter 11 bankruptcy reorganization has been marked by extensive disputes between creditors over the distribution of proceeds.
LFC , an internet-based real estate marketing firm, auctioned off the remaining Adelphia real estate assets. As a result of this acquisition, Adelphia no longer exists as a cable provider. This dispute is ongoing. The effective date of the Adelphia Plan of Reorganization occurred on February 13, 2007.
Although the purchase price by Pioneer Telephone was relatively small ($1.2 million) the transaction was very significant. Upon divesting its cable assets, Adelphia retained a skeleton crew of 275 employees to handle remaining bankruptcy issues.
