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Adelphia Scandal

John Rigas, his sons and Adelphia executives were charged with conspiracy, securities and wire fraud and with looting Adelphia out of hundreds of millions of dollars, used in part for luxury condos and a golf course. Investors lost about $60 billion when the price dropped. Here's a chronology.

Adelphia (ADLAE) Chronology of Events (choose date for trade) oldest to newest newest to oldest	ticker for trade in other company
2002-03-26: Adelphia stock trades at $20.39.
2002-03-27: Adelphia discloses that the Rigases borrowed $2.3 billion through family owned partnerships. The debt was kept off the company's balance sheet. Shares drop 18 percent. Former subsidiary Adelphia Business Solutions files for bankruptcy protection.
2002-03-28: Adelphia acknowledges that it may be liable for as much as $500 million in debt it guaranteed for Adelphia Business Solutions.
2002-04-01: Adelphia says in a Securities and Exchange Commission filing it needs more time to review its accounting and will not meet the deadline for filing its annual 10-K financial statement. Stock closes at $13.12.
2002-04-17: Adelphia reveals that the SEC has opened a formal investigation into its accounting practices.
2002-05-02: Adelphia says it expects to restate 1999, 2000 and 2001 financial results to show the off the books debt as liabilities.
2002-05-08: Adelphia announces it is soliciting bids for cable systems in the Los Angeles area, Florida, Virginia and elsewhere in the Southeast nearly half of its 5.7 million subscribers to reduce debt.
2002-05-15: John Rigas says he is stepping down as chairman, president and chief executive officer. Erland E. Kailbourne, former chairman and CEO of Fleet National Bank's New York region, is named chairman and interim chief executive officer. Nasdaq halts trading in Adelphia's stock.
2002-05-16: Adelphia announces the resignation of its chief financial officer, Timothy J. Rigas.
2002-05-17: Adelphia says federal grand juries are probing its finances. Kailbourne says it has missed $44.7 million in bond interest payments.
2002-05-23: John, Timothy, Michael and James Rigas resign as Adelphia directors. The family agrees to turn over $1 billion in assets to help cover loans, to turn over $567 million in cash flow from other cable companies it owns and to pledge all stock it holds as collateral. Adelphia now estimates it is liable for $3.1 billion in family debts.
2002-05-24: Adelphia releases details showing the Rigases used company cash or assets to help them buy and operate the Sabres, expand personal cable company holdings, acquire timberland and invest in a golf course, and that many of the deals weren't approved by the board. The company said it was investigating the family's use of company airplanes, condominiums and apartments.
2002-06-03: Adelphia's stock is dropped from Nasdaq and moved to the over the counter market.
2002-06-14: Adelphia says it has hired PricewaterhouseCoopers to replace longtime auditors Deloitte & Touche. Adelphia says it fired seven employees "whose primary function was to provide services to members of the Rigas family." Adelphia says it is also investigating why the company purchased a $700,000 membership at an exclusive South Carolina country club in 2000, and whether it was for personal use by the Rigas family.
2002-06-17: Adelphia misses $96 million in bond interest and preferred stock dividend payments.
2002-06-21: Adelphia reaches agreement with two banks for $1.5 billion in financing to keep operating while it reorganizes under Chapter 11 bankruptcy protection.
2002-06-25: Adelphia files for bankruptcy.
2002-07-24: Federal authorities arrest John, Timothy and Michael Rigas, accusing them of using the company as their "personal piggy bank." Also arrested are former vice president of finance James R. Brown and former director of internal reporting Michael C. Mulcahey. The SEC files a civil suit against the company and executives.
2002-09-23: John, Timothy and Michael Rigas are indicted on charges including conspiracy, securities fraud and wire fraud. Brown and Mulcahey are also indicted.

Adelphia (ADLAE) Chronology of Events

Adelphia (ADLAE)
Chronology of Events