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Companies that vanished: Adelphia

Posted Jun 15th 2008 2:40PM by Amey Stone
Filed under: Comcast Cl'A' (CMCSA), Time Warner Cable (TWC)

This post is part of a series on some of the most memorable companies that have disappeared.

I can't say I had much personal experience with Adelphia, which was the fifth largest cable company in the country when it filed for bankruptcy in 2002. But I did follow the case of the Rigas' family with interest. Dad and founder John and son Timothy Rigas ended up going to jail after treating this huge public company like their own personal candy store.

Founded in 1952 in Coudersport, Penn., Adelphia's name came from the Greek word for brother. The company went public in 1986 and grew by acquisition -- buying up smaller cable providers.

The company went bankrupt in 2002 after disclosing $2.3 billion in debt that was kept off the balance sheet. Federal prosecutors charged the Rigases and other officers of looting the company of an estimated $100 million, much of it spent on ridiculous excess -- like spending $6,000 to have Christmas trees flown in to New York.

Both Rigas men were found guilty and in 2007 started serving time in a Federal prison in Raleigh, North Carolina.

Time Warner Cable (NYSE: TWC) and Comcast (NASDAQ: CMCSA) bought up Adelphia's cable business in 2006, splitting up the customers by region.

Let us know in the comments what you miss about Adelphia. And be sure to check out other Companies That Have Vanished.

Tags: Adelphia, CMSCA, Comcast, John Rigas, JohnRigas, TWC

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