PHILADELPHIA — Adelphia Communications Corp. faces the daunting prospect of buying back $1.4 billion in bonds as a result of the Nasdaq Stock Market's decision to delist its shares, turning up pressure on the company to raise cash quickly or be forced to file for bankruptcy.

Adelphia headquarters is a converted high school building in Coudersport, Pa. Founder John Rigas and family members borrowed $2.3 billion but kept the debt off the company's books. (Associated Press photo) | ZOOM |

        The nation's sixth-largest cable television company already was scrambling, despite dissension among board members, to sell assets or lure investors to shore up finances after allegations of self-dealing by the family of company founder John J. Rigas.

        Adelphia faces pressure from lenders to file delinquent financial reports including its annual 10-K statement, overdue since April 1. The company is trying to account for off-the-books debt now estimated at more than $3 billion.

        Nasdaq said the stock will be delisted Monday because of failure to file the reports. The delisting would entitle convertible bond holders to turn them in and demand cash from Adelphia. The stock dropped 46 cents to close at 70 cents a share Friday, a 95 percent slide from $20.39 before Adelphia began divulging information about dealings with the Rigas family March 27.

        While the bondholders might not want to exercise their option and force Adelphia into bankruptcy, other pressures are growing, said Oren Cohen, a high-yield analyst at Merrill Lynch.

        And though the company could dodge bankruptcy by negotiating for deadline extensions and raising cash from investors or asset sales, Mr. Cohen said, “It's beginning to look like they are running out of time, and it's beginning to look more likely than not.”

        Analysts said Adelphia would have 40 days after delisting of its stock before the holders of $1.4 billion in bonds would be entitled to demand cash, but other deadlines loom much sooner. A 30-day grace period on $44.7 million worth of debt payments that Adelphia acknowledged that it missed in mid-May expires June 15.
       

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