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Technology Stocks : WCOM -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (10840)	6/25/2002 10:47:37 PM
From: hdl	Respond to of 11568

The nation's sixth largest cable company has been the subject of a Securities and Exchange Commission (SEC) and federal grand jury investigation into its finances. In March, Adelphia revealed that the family of founder John J. Rigas engaged in off-the-books borrowing to use Adelphia cash or assets to invest in a golf course and expand the Rigas family's personal cable assets. Last month, Adelphia ousted the Rigases -- including the founder's three sons -- from executive positions. The family later agreed to turn over $1 billion in assets and divert cash flow from family controlled cable companies to try to help the company make debt payments. Coudersport, Pa.-based Adelphia had been scrambling to sell assets or lure investors to ease a cash crunch as the SEC and two federal grand juries investigated debts amassed by the Rigas family. Related Stories WorldCom stock dives Adelphia misses payments Adelphia may delay Chap. 11 Adelphia's troubles came as similar allegations of off-the-books deals and questionable accounting were under a microscope at other companies. At WorldCom (WCOM: Research, Estimates), the SEC was investigating loans to Chief Executive Officer Bernie Ebbers that were used for purchases of stock. And off-balance-sheet financing practices have been under scrutiny since the December bankruptcy filing of Enron, which used private partnerships to shift debt off its books.