By Mark Scott
Coudersport, PA – Members of the Rigas family resigned their executive and board positions Tuesday at Adelphia Business Solutions (ABS). ABS is a separately run publicly-held company that is no longer an official part of Adelphia Communications. It declared bankruptcy in March. ABS provides integrated communications services to business customers through its fiber optic communications network.
John Rigas left as chairman of the board for Adelphia Business Solutions. His son, James, resigned as president and CEO. Also leaving board positions were sons Timothy and Michael.
According to a company statement, Patrick Lynch and Edward Mancini will act as non-executive co-chairmen of ABS. Robert Guth has been appointed president and CEO.
Also, Tuesday, it was announced the Adelphia name will soon be removed from the home stadium of the the Tennessee Titans football team. A bankruptcy judge has terminated the naming rights agreement between Adelphia Business Solutions and the team. The company had failed to make a $500,000 payment last month.
Wednesday's Wall Street Journal reported that the Securities and Exchange Commission is looking into Salomon Smith Barney's role as lead underwriter for some recent big offerings of Adelphia stock. At the same time, the investment firm's parent company, Citigroup Inc., was one of Adelphia's primary creditor banks.
The Journal cited people close to the Adelphia situation who say Citigroup's relationship with the struggling cable company put it in a position to possibly know about the co-borrowing arrangements between Adelphia and the Rigases that sparked the crisis.