and two of its units have missed $38.3 million of interest payments that were due Wednesday, according to a
report, and the revelation will likely raise worries about the company's ability to avoid bankruptcy.
The report indicated that sources said Adelphia missed a $23.44 million payment on its 9.375% notes maturing in 2009. The company's Olympus Communications unit missed a $10.63 million payment on its $200 million of 10.625% notes maturing in 2006, and its Century Communications unit missed a $4.19 million payment on its 8.375% bonds maturing in 2017,
quoted the sources as saying.
Adelphia has been in a downward spiral for the last month and a half, but the last two days have been particularly eventful. On Wednesday, the company said John J. Rigas, the man who founded Adelphia 50 years ago was stepping down as chairman and CEO of the troubled cable television operator. On Thursday, Timothy J. Rigas, the founder's son, resigned as chief financial officer.
Also this week, the company said it has suspended the audit of its long-overdue 2001 annual report, and
Nasdaq, which was about to hold a delisting hearing on Adelphia, halted trading in the stock.
Shares of Adelphia last traded Tuesday, closing at $5.70.