Adelphia Communications Corp. and more than 200 of its units filed for
Chapter 11 bankruptcy court protection in New York, the cable-television company
confirmed
in a press release late Tuesday.
After Adelphia lined up about $1.5 billion in debtor-in-possession financing
from two banks Friday, it was expected that the company would file within a
day or two.
A source close to the company said Citigroup Inc. and J.P. Morgan Chase &
Co. are the lead banks in the DIP financing, which would allow the company to
continue operating as it reorganizes.
The MSO first ran into trouble in March, after it revealed that it had $2.3
billion in off-balance-sheet debt.
The company later adjusted that figure to $3.1 billion and revealed a series
of self-dealing transactions with its founding Rigas family.
Currently under investigation by two federal courts and
the Securities and Exchange Commission for accounting irregularities, Adelphia
has been teetering on the brink of bankruptcy since it defaulted on about $7
billion in bank debt, missing interest payments on bonds totaling nearly $100
million.
