Adelphia
Brief Background
In the year 1952, John Rigas, the son of Greek immigrants, founded the company that would grow and become Adelphia Communications Corporation in Coudersport, Pennsylvania, when he purchased a $300 license to wire Coudersport for cable television services. In 1972, he and his brother, Gus, created Adelphia Communications Corporation. Adelphia is Greek for “Brothers”; this signifies their Greek heritage as a corporation run by brothers. Adelphia has always been a “family” business. Over the decades as the cable industry began to grow, Rigas’ company began to acquire several other cable systems in an effort to expand its operations. With the persuasion of the two of Rigas’ sons, Timothy Rigas and James Rigas, Adelphia became public.
Despite taking Adelphia public, by no means did the Rigas family relinquish control of their growing empire. In addition to the creation and initial public offering of ACC’s Class A Common Stock, the Rigas family also provided the creations of ACC Class B Common Stock, a “super-voting” stock which entitled the holders ten votes per share. This Class B Common Stock, 100% of which owned by the members of the Rigas family as of the Petition Date, effectively enable members of the Rigas family to elect eight of the nine members of the board of directors. Furthermore, the Rigases chose to maintain private ownership of a number of the family’s cable properties (the “Rigas Family Entities”) and continued to buy properties for the family, privately, as well as for Adelphia. Prior to May 2002, members of the Rigas family held five of the nine members of the board of directors and all of the senior executive positions at ACC. Thus, despite taking ACC public in 1986, the Rigas family maintained a high degree of control over all aspects of ACC’s operations.
ACC’s big move came in 1999 when the company made three large acquisitions all in one month that significantly expanded its operations. This acquisition included
In the year 1952, John Rigas, the son of Greek immigrants, founded the company that would grow and become Adelphia Communications Corporation in Coudersport, Pennsylvania, when he purchased a $300 license to wire Coudersport for cable television services. In 1972, he and his brother, Gus, created Adelphia Communications Corporation. Adelphia is Greek for “Brothers”; this signifies their Greek heritage as a corporation run by brothers. Adelphia has always been a “family” business. Over the decades as the cable industry began to grow, Rigas’ company began to acquire several other cable systems in an effort to expand its operations. With the persuasion of the two of Rigas’ sons, Timothy Rigas and James Rigas, Adelphia became public.
Despite taking Adelphia public, by no means did the Rigas family relinquish control of their growing empire. In addition to the creation and initial public offering of ACC’s Class A Common Stock, the Rigas family also provided the creations of ACC Class B Common Stock, a “super-voting” stock which entitled the holders ten votes per share. This Class B Common Stock, 100% of which owned by the members of the Rigas family as of the Petition Date, effectively enable members of the Rigas family to elect eight of the nine members of the board of directors. Furthermore, the Rigases chose to maintain private ownership of a number of the family’s cable properties (the “Rigas Family Entities”) and continued to buy properties for the family, privately, as well as for Adelphia. Prior to May 2002, members of the Rigas family held five of the nine members of the board of directors and all of the senior executive positions at ACC. Thus, despite taking ACC public in 1986, the Rigas family maintained a high degree of control over all aspects of ACC’s operations.
ACC’s big move came in 1999 when the company made three large acquisitions all in one month that significantly expanded its operations. This acquisition included