Adelphia declines to cover Rigases' legal costs
Copyright 2002 P.G. Publishing Co.
Adelphia Communications Corp. said yesterday it wouldn't cover legal costs of four members of its controlling Rigas family and another employee because they breached their duty to the cable-television company.
The company, which is struggling to stay out of bankruptcy court in part because of loans to Rigas family members, said in a Securities and Exchange Commission filing that it revoked legal protections previously promised to John Rigas, Timothy Rigas, Michael Rigas, Peter Venetis and James Brown.
"The board of directors, based on the recommendation of the special committee and consultation with counsel to the special committee, has determined that each" of the five men "deliberately breached his duty to the company and/or its shareholders," the filing said.
Venetis may be reinstated if he "presents the board with information such reconsideration is appropriate," the filing said.
Adelphia shares were delisted by the Nasdaq Stock Market for the company's failure to file an annual report, and last traded at 81 cents after losing 97 percent of their value this year. The company is based in Coudersport, Potter County.