John Rigas

Chief Executive Officer, Adelphia Communications

Adelphia Communications said the Rigas family agreed to relinquish control of the embattled cable company they founded and transfer assets valued at more than $1 billion. The agreement also provides that Rigas family entities will contribute cash flow of about $567 million from cable properties they own. The funds will be used to support the family's obligations under co-borrowing agreements and company debt held by the family. As part of the pact, John Rigas and his sons, Timothy Rigas, Michael Rigas and James Rigas, have resigned as directors. Peter Venetis, a son-in-law of John Rigas, will also resign from the board. More...

Adelphia Communications Corp. said yesterday that Chief Financial Officer Timothy J. Rigas had resigned, a day after his father, John Rigas, stepped aside as chairman under increasing scrutiny of dealings between the company and partnerships controlled by the Rigas family. More...

Adelphia Indictments Readied
Prosecutors are preparing to indict John J Rigas, founder of Adelphia Communications Corp, and three of his children for allegedly taking part in accounting gimmicks and self-dealing at the bankrupt cable television firm, sources close to the investigation said. Adelphia has been under fire since March, when it revealed that it had doled out more than $3 billion in loans to company executives. Adelphia also inflated the number of subscribers to its cable service and overstated its revenue and cash flow by some $500 million in the past two years, according to recent disclosures it made in securities filings. Grand juries in New York and Pennsylvania have been probing the company. More...