Adelphia's New Leaders Pledge to `Hit the Ground Running'
COUDERSPORT, Pa., March 4 /PRNewswire-FirstCall/ -- Adelphia
Communications Corporation (OTC: ADELQ) announced today that the Bankruptcy
Court for the Southern District of New York has approved the Company's
employment agreements with William T. Schleyer, Chairman of the Adelphia Board
of Directors and Chief Executive Officer and Ron Cooper, President and Chief
Operating Officer, with certain non-economic modifications.
In the interest of addressing the concerns of all of Adelphia's important
stakeholders, Bill Schleyer has agreed to make the minor modification to his
contract requested by the Court. Mr. Cooper's contract was approved without
any modification. The new employment agreements will go into effect
immediately.
Schleyer and Cooper, who have been serving as non-officer employees to
Adelphia since the Company entered into employment agreements with them on
January 17, issued the following statement:
"We are pleased and excited to embark upon the complex challenge and
extraordinary opportunity of rebuilding Adelphia. We begin the restructuring
effort with a skilled and dedicated employee base, a core commitment to
customer service, an advanced set of cable and broadband offerings and strong
operations in eight regions nationwide. These significant assets will enable
us to hit the ground running in our effort to better serve Adelphia's
customers and regain the confidence of all stakeholders.
"We will augment this considerable foundation with a talented management
team -- comprised of old and new faces -- capable of leading an effective and
efficient restructuring effort."
About Adelphia
Adelphia Communications Corporation is the fifth-largest cable television
company in the country. It serves 3,500 communities in 32 states and Puerto
Rico. It offers analog and digital cable services, high-speed Internet access
(Adelphia Power Link), and other advanced services.
Cautionary Statement Regarding Financial and Operating Data
As a result of actions taken by the former management of the Company: (a)
the Company has not yet completed its financial statements as of or for the
year ended December 31, 2001, or received its independent public accountants'
report thereon or filed with the Securities and Exchange Commission (the
"Commission") its Annual Report on Form 10-K for the year ended December 31,
2001; (b) the Company's former independent public accountants, Deloitte &
Touche LLP, suspended their auditing work on the Company's financial
statements as of and for the year ended December 31, 2001 and withdrew their
audit report with respect to the year ended December 31, 2000; (c) the Company
has not yet completed its financial statements as of and for the three months
ended March 31, 2002, June 30, 2002 or September 30, 2002, or filed with the
Commission its Quarterly Report on Form 10-Q for the quarters ended March 31,
2002, June 30, 2002 and September 30, 2002; (d) the Company does not
anticipate timely filing of its Annual Report on Form 10-K as of and for the
year ended December 31, 2002; and (e) the Company expects to restate its
financial statements for the years ended December 31, 1999 and 2000, and its
interim financial statements for 2001 and possibly other periods. Current
management took control in May 2002 and has retained new independent auditors
and begun the preparation of new financial statements for the periods in
question; as a result of certain actions of prior management that the Company
has previously disclosed, the Company is unable to predict at this time when
such financial statements will be completed. In addition, current management
believes that the public information provided by prior management on other
matters of interest to investors, such as the Company's rebuild percentage
(the percentage of the Company's cable television systems that the Company
believes have been upgraded to current standards), was unreliable. As a
result, the Company anticipates that it may have to supplement the financial
and other information contained in this Form 8-K and that such supplemental
information may be material.
Cautionary Statement Regarding Forward Looking Statements
This document includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended (the "Securities Act")
and Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). All statements regarding Adelphia Communications Corporation
and its subsidiaries' (collectively, the "Company's") expected future
financial position, results of operations, cash flows, restructuring and
financing plans, business strategy, budgets, projected costs, capital
expenditures, competitive positions, growth opportunities, plans and
objectives of management for future operations and statements that include
words such as "anticipate," "if," "believe," "plan," "estimate," "expect,"
"intend," "may," "could," "should," "will," and other similar expressions are
forward-looking statements. Such forward-looking statements are inherently
uncertain, and readers must recognize that actual results may differ from the
Company's expectations. The Company does not undertake a duty to update such
forward-looking statements.
Actual future results and trends for the Company may differ materially
depending on a variety of factors discussed in the Company's filings with the
Commission, including its recently filed Current Reports on Form 8-K, the most
recently filed Quarterly Report on Form 10-Q, the Form 10-K for the year ended
December 31, 2000, and the most recent prospectus supplement filed under
Registration Statement No. 333-64224, under the section entitled "Risk
Factors" contained therein. Factors that may affect the plans or results of
the Company include, without limitation: (a) the Company's filing of a
petition for relief under Chapter 11 of the United States Bankruptcy Code; (b)
the results of litigation against the Company including the recently filed
civil complaint by the Commission and the potential for a criminal indictment
of the Company; (c) the lack of substantial cable industry experience among
certain members of the Company's senior management; (d) the effects of
government regulations and the actions of local cable franchise authorities;
(e) the availability of debtor-in-possession financing and surety bonds to
support the Company's operations; (f) the results of the Company's internal
investigation and the matters described above under "Cautionary Statement
Regarding Financial and Operating Data"; (g) actions of the Company's
competitors; (h) the pricing and availability of equipment, materials,
inventories and programming; (i) product acceptance and customer spending
patterns; (j) the Company's ability to execute on its business plans, to
provide uninterrupted service to its customers and to conduct, expand and
upgrades its networks; (k) technological developments; (l) matters relating to
or in connection with the recent bankruptcy filing and proceedings of Adelphia
Business Solutions, Inc.; (m) changes in general economic conditions and/or
economic conditions in the markets in which the Company may, from time to
time, compete; (n) the movement of interest rates and the resulting impact on
the Company's interest obligations with respect to its pre-petition bank debt;
and (o) the delisting of Adelphia Communication Corporation's common stock by
Nasdaq. Many of such factors are beyond the control of the Company and its
management.
SOURCE Adelphia Communications Corporation
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Related links:
http://www.adelphiacom.com
CONTACT:
Eric Andrus of Adelphia Communications
Corporation, +1-877-496-6704
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