Stephen Buckfelder, Reid Fronk,
and Ashley Roberts
“We will leverage our historical strengths of
customer focus, community involvement,
and employee dedication; address issues
that limit profitability and growth; and act
with a sense of urgency accountability and
teamwork to emerge from bankruptcy and
to succeed as a broadband industry
leader. We will develop a reputation as a
company with outstanding corporate
governance.”
Urgency
 Accountability
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 Integrity
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Respect
 Ethical
Conduct
Teamwork and Communication
 Recognition and Celebration
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History
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1951- pays $72,000 for a run down movie theater in
Coudersport, Pennsylvania
1952-pays $300 for local cable franchise
1954-Gus Rigas joins franchise
1972- Incorporated, named Adelphia greek for “brother”
1983-John buys out Gus’ shares and his three sons join
1986-Adelphia goes public
1999-pays $8.5 billion for Century Communication,
Frontier Vision Partners, and Harron Communications
Becomes #6 cable company in the nation
2001-Rigas inducted into cable television Hall of Fame
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March 2002 -Adephia announces that it provided
collateral for $2.3 billion in loans to the Rigas family.
April 2002 -SEC issues formal order of investigation of
Adelphia
May 2002- John Rigas resigns from positions as
Chairman and CEO
Timothy Rigas resigns from positions as Executive Vice
President, CFO, CAO and Treasurer.
Stock prices plummet
Erland Kailbourne appointed as CEO and Chairman
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June 2002 -Adelphia filed for chapter 11 protection of
the US Bankruptcy Code
Adelphia delisted from NASDAQ
July 2002 - Complaint filed against the Rigas family and
former executives and board members
August 2002 -Anthony Kronman ad Rodney Cornelius
are elected to the Board of Directors
Adelphia receives Bankruptcy Court order establishing
procedures for trading ACC’s stock in order to preserve
the use of Adelphia’s net operating losses to offset future
income for tax purposes
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October 2002 -Hanover Insurance Company agrees to
extend up to $95 million in surety credit to Adelphia,
allowing for continued operations and maintenance of it’s
franchise agreements
January 2003 -Official Committee of Equity Security
decides that the Rigas family, insiders, can’t vote any of
the stock held or controlled by any of the Rigas
defendants
March 2003 - New CEO (William Schleyer) COO (Ron
Cooper), and CFO (Vanessa Wittman) hired
Adelphia corporate headquarters relocates to Denver,
Colorado
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May 2003 - Susan Ness and Philip Lochner
become new directors on the Board
June 2003 - Four members of the Board of
Directors, who served prior to Adelphias Chapter
11 filing, step down to begin the transition to a
completely independent Board of Directors
April 2004 -Adelphia begins to explore selling
the company to complete the Chapter 11
process.
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John Rigas, Timothy Rigas and Micheal Rigas
“used the company as their personal piggy
bank”
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They are alleged with taking millions of dollars from the
company to pay for luxuries such as condos, and a golf
course as well as to cover personal investment losses.
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It is also claimed that the Rigas family “violated the
Racketeer Influenced and Corrupt Organizations Act
(RICO), federal conspiracy, securities fraud, bank fraud
wire fraud, false operating statistics, state tax evasion
insider trading, and using corporate assets for personal
gain.
In the SEC lawsuit, it is alleged that the former
executives excluded billions of dollars in liabilities from
the financial statements by hiding them on the books of
“off balance sheet affiliates.”
They are also accused of falsifying operating stats and
inflating earnings to meet the predictions by Wall Street
analysts.
Stock prices fell from their peak of $66 in
May 1999 to just 15 cents in June 2002.
 Investors are weary of big business as
well as investing. The Rigas family
caused investors to lose at least $60
billion.
 Employees jobs are threatened
 The welfare of Coudersport Pennsylvania
is at risk.
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Adelphia had planned to build a new office
building in Buffalo, New York. This building
would have brought 1000 jobs to the state, as
well as increased the economic activity in the
area.
Corruption cost NY $2.9 billion, cut tax revenues
by $1 billion, and decreased the value of the
pension fund by $9 billion.
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Scientific-Atlanta advanced Adelphia $26 a box to help
market a new digital service. On June 10, Adelphia said
it never spent the advance as it was intended. Instead
the money was used to reduce expenses. Scientific
Atlanta will probably never see the $83.8 million owed to
it.
• Walt Disney, who sell their ESPN show to
Adelphia, will see it’s income cut by $50 million.
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In the summer of 2000, Adelphia purchased a privately
owned cable company, Prestige Cable. After Adelphia
declared bankruptcy, creditors to the cable giant
searched for ways to make money back. The creditors of
Adelphia are currently suing the three stock holders of
Prestige Cable for knowingly selling to an unstable
company. The creditors are arguing that the stockholders
of Prestige worked with the Rigas family in order to
increase the price of Adelphia's stock.
John Rigas -Found guilty on 18 counts of
fraud and conspiracy charges
 Tim Rigas -Found guilty on 18 counts of
fraud and conspiracy charges
 Michael Rigas -Resulted in mistrial due to
a hung jury
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Time Warner and Comcast Communications are both
making bids on the company.
It is rumored that the two companies are going to join
forces.
By joining together they are hoping to reduce the risk of
a bidding war. Neither company wants to pay too much
for the company. It is estimated that Adelphia will sell for
$20-$21 billion. The two companies will then divide the
service areas.
A key area is Los Angeles, after it is decided who will
receive this section of California the rest of the land
should be divided easily.
After filing for chapter 11 bankruptcy, the price of
Adelphia bonds plummeted to pennies on the dollar.
Now that there is talk of Adelphia being sold, the price of
Adelphia's bonds have started to rise.