Adelphia Misses Payment Date, Hires New Auditor

Cable operator Adelphia Communications Corp. has missed a $51.25 million interest payment, a move which may bring the company one step closer to a bankruptcy filing. "It's highly unlikely they can avoid bankruptcy at this point," said Sean Egan, managing director of Egan-Jones Ratings, a Philadelphia-based investment ratings company. "There are simply too many mounting obligations and no willing buyers to take a chance buying their assets." An interest payment was also missed by the company's subsidiary, Arahova Communications Inc., which failed to meet the deadline for a $4.19 million payment.

The company was dropped from Nasdaq two weeks ago after it failed to file its required 10-K annual report with the Securities and Exchange Commission (SEC).

Last week Adelphia was in the news when it fired its auditors, Deloitte & Touche, after restating earnings for 2000 and 2001. The company is being investigated by the SEC and two federal grand juries for failing to report off-balance sheet loans of more than $3 billion to company founders, the John J. Rigas family, and to companies controlled by the family.

Adelphia has now retained the services of PricewaterhouseCoopers (PwC) as independent accountants and has indicated that PwC will make filing the overdue 10-K report its first priority.

You may like these other stories...

The Public Company Accounting Oversight Board (PCAOB) on Tuesday adopted a new auditing standard and amendments in three areas of the audit that could pose an increased risk of material misstatement in company financial...
Read more from Larry Perry here and in the Today’s World of Audits archive.In my last article, I presented an overview of one of the first steps in the preplanning phase of an audit engagement: reviewing prior year...
Read more from Larry Perry here and in the Today’s World of Audits archive.AU-C Section 800, Special Considerations—Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks (SPFs),...

Already a member? log in here.

Upcoming CPE Webinars

Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.
Nov 12This webcast presents basic principles of revenue recognition, including new ASU 2014-09 for the contract method. Also, CPAs in industries who want a refresher on revenue accounting standards will benefit.
Nov 18In this session Excel expert David Ringstrom, CPA tackles what to do when bad things happen to good spreadsheets.