Adelphia Communications Corp. on Monday will be delisted from the Nasdaq due to its failure to file required financial reports. As a result, it faces the prospect of buying back hundreds of millions of dollars in bonds for cash or to file for bankruptcy.
Nasdaq announced the delisting after the close of trading Thursday. "This decision is final," Nasdaq spokesman Scott Peterson was quoted in a wire report as saying. He said Adelphia can seek to have the stock listed again by filing overdue financial reports and meeting other listing requirements.
Controversy has been swirling around the nation’s sixth-largest cable company for some time.
Adelphia Communications Corp. founder John Rigas and sons Timothy, Michael and James recently resigned as directors at the compe. Rigas's son-in-law, Peter Venetis, also was asked to resign from the board.
John Rigas stepped down as CEO of the firm, and his son Tim, the company’s CFO, left his executive post the same week. Adelphia, based in Coudersport, Pa., came under fire after the company disclosed $2.3 billion in loans it guaranteed to partnerships controlled by the Rigas family.
The Securities and Exchange Commission has been conducting an informal probe into co-borrowing agreements at the company. The Southern District of New York and the Middle District of Pennsylvania have also been conducting grand jury investigations on the company.
And Adelphia recently missed approximately $45 million in interest and dividend payments. “The company decided not to make these payments on outstanding bonds and preferred shares because we are now pursuing a thorough evaluation of Adelphia’s business objectives and financial requirements,” Erland E. Kailbourne, newly appointed chairman and interim CEO, said in a statement issued at the time.
