Adelphia Communications Corporation completed the sale of substantially all of its assets to Time Warner Cable and Comcast Corporation for aggregate consideration of approximately $12.5 billion in cash and approximately 16 percent of the equity of Time Warner’s cable subsidiary.
- Adelphia’s approximately 4.8 million customers will be distributed between Time Warner Cable and Comcast.
- Adelphia’s almost 13,000 employees will transfer to Time Warner Cable and Comcast.
- Adelphia also consummated a plan of reorganization for the former joint ventures with Comcast (Century-TCI and Parnassos), resulting in the repayment in full of approximately $1.7 billion of indebtedness.
- Adelphia will hold the remaining sale proceeds for distribution to its creditors through a Plan of Reorganization as it seeks to resolve its Chapter 11 bankruptcy case.
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- Adelphia grew into the fifth largest MSO in the U.S., reaching approximately 5.2 million basic subscribers in 31 states, including in the Los Angeles area, where it was the largest cable operator.
- In June 2005, John Rigas, the founder of Adelphia Communications, was sentenced to 15 years in federal prison for fraud. Timothy Rigas, his son, who served as Adeplhia’s CFO, was sentenced to 20 years. The father was 80, while the son was 49.
- In May 2002, following allegations of financial wrong-doing, founder and CEO John Rigas and CFO Timothy Rigas resigned from the company and its Board of Directors. They were subsequently indicted. Adelphia filed for bankruptcy protection the following month.