Adelphia confirms SEC inquiry

PHILADELPHIA - Adelphia Communications Corp. confirmed Wednesday that federal authorities are investigating the agreements in which the company&#39;s founding family borrowed $2.3 billion through various co-borrowers and kept the debt off the balance sheet. <br> <br> Officials at Adelphia, the country&#39;s sixth largest cable television provider, didn&#39;t immediately return calls Wednesday for comment on the investigation. <br> <br> The Securities and Exchange Commission is conducting &#34;an informal inquiry&#34; into the debt, the company said Wednesday. <br> <br> Adelphia&#39;s stock has been in a sharp decline since it disclosed the debt in its fourth-quarter earnings report last week. Company officials revealed that the family of founder John Rigas had incurred $2.3 billion in debt that was not on the company balance sheet through borrowing agreements with entities including Highland Holdings. <br> <br> Adelphia then announced Monday that its annual 10-K financial report was being delayed to review accounting for the debt. <br> <br> Analysts said the stock declined because of the company had not provided details on how the loans, which the family apparently used partly to buy Adelphia stocks and bonds, were secured. The disclosures came as the SEC was investigating loans to WorldCom Chief Executive Officer Bernie Ebbers used for purchases of stock. <br> <br> Adelphia stock fell from $20.39 a share on March 26, prior to the loan disclosures, to a closing price of $11.83 on Tuesday the Nasdaq Stock Exchange, following Monday&#39;s announcement of the delayed 10-K report. <br> <br> <br> ------ <br> <br> On the Net: <br> <br> Adelphia Communications: http://www.adelphia.com/cable <br> <br>

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