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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Wolff who wrote (78349)	6/21/2002 4:02:17 AM
From: Wolff	Read Replies (1) \| Respond to of 122087

Adelphia Discloses More Dealings to SEC Sun Jun 16, 5:59 PM ET NEW YORK (Reuters) - Investigations into Adelphia Communications Corp.'s finances unearthed additional questionable dealings, according to a recent filing with securities regulators by the beleaguered cable television firm. Adelphia is the target of a Securities and Exchange Commission ( news - web sites) accounting probe and two federal grand jury investigations into multibillion-dollar off-balance sheet loans to the Rigas family, which founded the No. 6 U.S. cable television operator. Late Friday, in a Form 8-K filing noting Regulation FD disclosure, the firm said it has identified about $1.9 million in outstanding loans to current and former employees, and has booked a reserve of about $500,000 against non-payment of these loans. Adelphia has also guaranteed loans, in full or part, for four employees and four employees of Adelphia Business Solutions, which was spun off from Adelphia early this year but dominated by the Rigas family until recently. The total aggregate outstanding amount of the company's guarantees under these eight loans is about $278,000, the Regulation FD filing noted. Regulation FD, also known as "Fair Disclosure," was implemented by the SEC in the fall of 2000, and forces companies to disclose any important business developments. The latest findings were made by a "Special Committee" which Adelphia's board has authorized to conduct an investigation of the firm, including transactions involving Adelphia and some subsidiaries, and members of the Rigas family, affiliates and entities under their control. "The Special Committee is continuing its investigation. This investigation may result in supplementing or revising information contained in this Form 8-K," Adelphia added. Concerns about a possible bankruptcy by Adelphia have cut Adelphia bond prices to less than half their value. Shares of Adelphia, based in Coudersport, Pennsylvania, were delisted June 3 from the Nasdaq Stock Market. They closed up 1 cent at 15 cents on Friday on the Pink Sheets where they now trade. Also on Friday, Adelphia said it hired accounting firm PricewaterhouseCoopers as its auditor, to replace Deloitte & Touche LLP, which it fired Monday. PricewaterhouseCoopers would immediately begin to help prepare Adelphia's annual report for the year ended Dec. 31, 2001. On Monday, Adelphia said it lowered its 2001 subscriber count because of inaccuracies and revised lower its 2000 and 2001 revenue and cash-flow results.