Adelphia to restate financial results

Adelphia Communications, under scrutiny by the Securities & Exchange Commission for unsecured loans it made to partnerships controlled by its founding members, the Rigas family, said it expects to restate financial results and fold in $1.6 billion in off-balance sheet deals. Adelphia, the nation’s sixth-largest cable company, also said it could default on some credit agreements and is working to establish new deadlines while it undertakes the review.

The company has already said it would delay filing its 2001 annual report. It now said it has reached a tentative conclusion how to account for the increased interest expense related to the loans and that its 1999, 2000 and interim 2001 results will be restated.

Adelphia disclosed in March that it had guaranteed $2.3 billion in loans to partnerships controlled by the Rigas family. The family said it used some of the money to buy an undisclosed amount of Adelphia shares.

Adding to its troubles, the company’s stock could be delisted for not filing an annual report on time.

--Jim Barthold, Senior Editor