Company:DR Telecom Consulting & Solar Energy Solutions
Occupation:Telecom consultant & Solar EnergySolutions
Location:Based out of CT
Adelphia 8-K Brings More Issues
By Mike Farrell
Multichannel News
6/14/2002 6:11:00 PM
The bad news from Adelphia Communications Corp. continued late Friday when the company filed an 8-K statement with the Securities and Exchange Commission stating that it is investigating additional loans to employees and expenditures for a golf-club membership.
On Oct. 30, 2000, Adelphia purchased one membership in the Briar Creek Golf Club in South Carolina for $700,000, which was paid through Adelphia’s Cash Management System.
According to the filing, Adelphia 'is investigating this transaction and whether the membership interest was purchase primarily for purposes relating to the business of the company, or was purchased primarily for the personal use by members of the Rigas family.' The filing stated that the membership was neither presented nor approved by the board of directors.
Also in the SEC filing, Adelphia said that in addition to a possible $700,000 loan made to former vice president of finance Jim Brown, the MSO identified loans made to current and former employees totaling $1.9 million. Adelphia, the filing said, has taken a reserve of approximately $500,000 against nonpayment of these loans.
In addition, loans were made to eight current and former employees of Adelphia’s competitive-local-exchange-carrier subsidiary, Adelphia Business Solutions, for a total of $278,000.
The MSO also said it has taken action regarding five employees who had worked under Brown, transferring them to other duties inside the company. Those employees are cooperating with the investigation being done by the counsel to Adelphia’s special committee of independent directors.
The company has identified seven employees on the Adelphia payroll whose primary function was to provide services to members of the Rigas family. All seven were either terminated by the company or transferred to the Rigas family's payroll, the filing stated.
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