COUDERSPORT, PA: Adelphia Communications has hired Public Strategies Inc. (PSI) in the aftermath of the cable company filing for bankruptcy and the indictment of several former directors on charges of conspiracy, securities fraud, and wire fraud.
Terry McDevitt, managing director of PSI, confirmed that Adelphia had retained the agency. However, she declined to comment on what kinds of services the agency would be providing, or how those services would be used.
Adelphia did not respond to similar questions about why or how it was using PSI.
In March, Adelphia disclosed that CEO John Rigas and his sons had borrowed $2.3 billion through family-owned partnerships, but that the debt was kept off Adelphia's balance sheet. The announcement caused the company's stock price to drop 18%.
One month later, Adelphia announced that it was reviewing its accounting, and would not meet SEC deadlines for filing its financial statement. The SEC opened an investigation into Adelphia's accounting practices shortly thereafter, and in May Adelphia announced it would restate its 1999, 2000, and 2001 financial results.
Rigas stepped down as CEO in May, and also joined his sons in stepping down from Adelphia's board of directors.
In June, the company filed for Chapter 11 bankruptcy protection. And in July, federal authorities arrested Rigas and his two sons. The indictments on charges of conspiracy, securities fraud, and wire fraud were handed down in late September.
Adelphia's stock was delisted from the Nasdaq in early June.