The troubled cable TV operator Adelphia Communications is facing possible bankruptcy, following the news that some of the company’s subsidiaries have defaulted under certain credit agreements, because of Adelphia’s failure to deliver financial information to its creditors.
Adelphia has still to complete its financial statements for the 2001 fiscal year. The statements were due to be delivered on April 1. Adelphia’s failure to deliver its financial statements led the Nasdaq Stock Exchange to delist the company’s shares on June 3.
Adelphia’s share value has plunged in recent months following revelations of multi billion dollar off balance sheet transactions involving the company and its founding Regas family. The company’s shares started 2002 valued at $31.18. Adelphia’s share value has since fallen to around $1.16.
Adelphia is trying to sell some of its assets and obtain capital, in order to meet its short-term business objectives.