Adelphia Under Investigation by 2 Grand Juries

Adelphia Communications Corp. said Friday that it is being investigated by two grand juries and also that it missed making $44.7million in interest and dividend payments.

The No. 6 U.S. cable operator said grand juries in the Southern District of New York and the Middle District of Pennsylvania are investigating matters related to the company. It said it is cooperating fully with the investigation.

Coudersport, Pa.-based Adelphia, mired in a controversy over company-guaranteed loans to partnerships controlled by its founders, the Rigas family, is trying to avoid a delisting from Nasdaq.

This would allow bondholders to force Adelphia to buy back $1.4 billion of convertible bonds for cash. The company said a hearing with the National Assn. of Securities Dealers, which regulates Nasdaq, was held on Thursday, and that no decision has been made.

“Today’s announcement confirms everyone’s worst fears,” said Harold Rivkin, president of H. Rivkin & Co. in Princeton, N.J., a brokerage that trades Adelphia bonds. “It looks like the whole thing is unraveling. Their actions and disclosure are indicative of a company that plans to file for bankruptcy.”