Adelphia Sues Rigases Over Five Properties

Adelphia Communications Corp. sued founder John Rigas and his family, claiming they failed to turn over $14 million of property, including a Manhattan apartment, as part of a deal to pay down their debt in 1994.

Adelphia asked the U.S. Bankruptcy Court in New York to order the Rigases to turn over the deeds for an apartment in New York and four properties in Coudersport, Pa. The Greenwood Village, Colo.-based company said the Rigases pledged the deeds as part of a deal to repay Adelphia for amounts they owed the company in 1994.

“The Rigases have turned over to Adelphia all properties that they agreed to sell to Adelphia in the 1994 transaction,” said Lawrence McMichael, a lawyer representing the Rigas family. “The Rigases will vigorously defend the suit.”