Adelphia DIP Financing Approved

Adelphia Communications Corp., the bankrupt cable company embroiled in one of the country’s largest corporate scandals, announced Friday a U.S. Bankruptcy Court has approved $1.5 billion in debtor-in-possession financing provided by a consortium of banks, including lead lenders JPMorgan Chase Bank and Citigroup USA, Inc.

Adelphia, the No. 6 cable operator, filed for Chapter 11 bankruptcy-court protection June 25. A few days later the U.S. Bankruptcy Court for the Southern District of New York approved an initial advance under the DIP facility of $500 million. In a press release Friday, Adelphia stated it was operating in 32 U.S. states and Puerto Rico without interruption.

John Rigas, the cable TV mogul who founded Adelphia Communications Inc. approximately half a century ago with the $300 purchase of a small cable franchise, was arrested along with two of his sons this summer on felony charges of conspiracy and securities, wire and bank fraud.

The Securities and Exchange Commission has described the case as “one of the most extensive financial frauds ever to take place at a public company.”

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