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Adelphia Bankruptcy
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What is Bankruptcy:
It is very important for us to understand what is the meaning of the word bankruptcy. When any person, firm, company etc decides that it is not in a position to pay all the dues of other parties, persons, companies, etc, it declare itself bankrupt. Thus, it can be rightly said that the bankruptcy is a situation, of course financial one, in which the firm, person etc is not able to repay the money it has borrowed. The bankruptcy may occur due to many reasons.
These reasons can be the excessive accumulated losses, happening of any big undesirable event that has eroded the entire profits etc. Whatever is the reason, one thing is certain and it is that the creditors of the bankrupted company etc would not be able to get their money that has been lent, in a normal course. It should be understood here that it is not like that any morning the company or a firm or a person declares itself bankrupt and all the creditors would take it for granted. An application has to be filed by the company that need to declare itself bankrupt and after examining the assets, receivables etc, the court declares the company bankrupt and the money owed to various parties is paid by selling the available assets of the company. Thus, bankruptcy is basically a procedure that is adopted by any person, firm or a company when it is not possible to repay the money borrowed in the normal course. The Adelphia Bankruptcy:
It is very important for us to understand first what is Adelphia Adelphia is basically a television company in the United States. It is a cable television company in the country and was ranked fifth in the country before it was declared Bankrupt. If one wishes to know about the current status of the company, all assets of the company were sold to the Time Warner NY Cable LLC and the Comcast Corporation on July 31 this year, i.e. 2006. The sale of the assets of Adelphia was a part of the Sale transaction. Adelphia used to be a very renowned cable television company in the United States and it was catering to the needs of its various customers in the 31 States of U.S. Besides providing the cable television network, the company was also involved in providing the digital video services and the analog services. The other services that were being provided by Adelphia include the high speed Internet access services and the broadband services to the various customers. It is quite obvious that when such a company would declare itself as bankrupt, everybody would be surprised and this is exactly what happened. Adelphia is one of the oldest television network companies of the United States. It was started when the small entrepreneurs using the primitive antennas and the coaxial cable created this company. It is very important to say that Adelphia really revolutionized the Television network in the whole of the United States.
Diary of Events:
Let us start from the date when the Adelphia was declared bankrupt. It was on the June 25,2002 when
this cable television company filed the petition voluntarily for the bankruptcy. The petition was filed as per the various laws under the chapter 11 of the United States Bankruptcy Code. The case number that was allotted to the adelphia bankruptcy case was 02-41729. The petition was filed by the Adelphia for the bankruptcy in the Southern District of New York. If any person or a firm, who was dealing with the Adelphia, wishes to see the copy of the petition, he can easily see it, as it is available at the office of the clerk of the Bankruptcy Court of the Southern District of New York. Alternatively, he can easily visit www.nysb.uscourts.gov. This website can be seen only after an account has been obtained for the Pacer Services Center at 1-800-676-6856. It is quite obvious that Adelphia has borrowed funds from various companies that were not paid back. Thus, on April 3,2002, Adelphia announced the SECs informal inquiry into all the borrowing agreements in which the Adelphia entered into when it raised the funds. These were the co-borrowing arrangements. The SEC issued the formal orders for the investigation in the matter on April 17,2002. Thus, it became very necessary to suspend the Auditing work that was being carried on for the previous year. So, Deloitte & Touche LLP, the auditors of the Adelphia suspend their auditing work for the year ended December 31, 2001. On May 15, 2002, John Rigas resigned from the post of Chairman and the CEO of Adelphia and the court appointed Eland Kailbourne as the interim CEO and the Chairman of Adelphia. On the same day, the Adelphia failed to make the interest payments of about $38.3 million under certain notes and conditions and also, the $ 6.5 million payment to the Series E Mandatory Convertible Preferred Stocks were also suspended. The Adelphia was delisted from the NASDAQ on June 3,2002. On June 25, 2002, Adelphia and some of its affiliates and subsidiaries filed application for the chapter 11 protection. The Price Water House Coopers were retained as the Adelphias auditors in the above case. October 25, 2002 is a very important date as far as the adelphia bankruptcy is concerned. It was on this day that the Adelphia received the Bankruptcy Court approval. It was the approval for the agreement with the Hanover Insurance Company. As per the agreement made, the Hanover agreed to extend about $ 95 million in connection with the maintenance of then existing surety bonds. Thus, the franchisee agreements were continued as per the agreement. After this date, many petitions were filed by the Adelphia against its auditors and the Corporate headquarter was moved from Coudersport to Denver, Colorado. After a long series of events, the Adelphia was sold to Time Warner NY Cable LLC and the Comcast Corporation Closes. The JV that was formed became effective by its all the agreed terms. On September 18, 2006, the Adelphia filed proposed drafts of Second Disclosure Statement Supplement.
So, Adelphia Lost its Ground:
I think it is quite clear to the reader that the Adelphia is no more existing now as its all the assets have been sold to Time Warner. The article provides all the information about the Adelphia becoming bankrupt and other series of events.
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