Adelphia Communications Corp. founder John Rigas and sons Timothy, Michael and James have resigned as directors of the nation's sixth-largest cable provider. Rigas's son-in-law, Peter Venetis, has also been asked to resign from the board.
John Rigas recently 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.
