Adelphia Communications Corp. executive vice president and chief financial
officer Timothy Rigas resigned Thursday, one day after his father, Adelphia
chairman and CEO John Rigas, stepped down from the besieged MSO.
Adelphia also said a committee consisting of board members Leslie Gelber,
Dennis Coyle and interim CEO Erland Kailbourne will 'have broad powers to
conduct a full and thorough investigation into a number of issues, including
ones regarding transactions between the company and certain entities controlled
by the Rigas family.'
Multichannel News previouslyreported that Adelphia senior VP of
operations Ann Montgomery also is resigning, effective May 31.
Timothy Rigas was the executive who stumbled during a now well-known March 27
earnings call with analysts after Merrill Lynch & Co. analyst Oren Cohen
asked how Adelphia was backing up $2.3 billion in off-balance-sheet debt.
'We're very comfortable that the debt can be paid off,' Timothy Rigas
responded on the call. 'We will try to see if we can give you more clarity on
that.'
Since then, Adelphia's stock has plummeted more than 70 percent. The company
also faces a formal investigation from the Securities and Exchange Commission, a
possible NASDAQ delisting for failing to file a 10-K report and many shareholder
lawsuits.
Both Timothy Rigas and John Rigas said they plan to remain on Adelphia's
board. Executive VP for strategic planning James Rigas and executive VP of
operations Michael Rigas, who are also directors, still held those titles as of
Thursday afternoon.
