Adelphia Communications, the cable scandal that apparently never goes away, despite the fact that former founder John Rigas is serving 12 years in prison and his son Timothy, the company's former CFO is serving 15, is back in the news.
A lawyer seeking recovery for the Coudersport, Penn. company's creditors has argued in U.S. district court that the cable TV company had been "illegally coerced" by banks trying to garner investment banking work. Michael Harwood, representing the Adelphia Recovery Trust, claims that the banks, including Citigroup, Credit Suisse Group and others, put pressure on Adelphia to make loan decisions and that they also knew of the fraud taking place that would lead to the eventual collapse of the company.
The banks, of course, disagree.
"At most the evidence reflects cross-selling and cross-marketing, and there's nothing inappropriate about that," an attorney representing the banks, Jean-Marie Atamian, said in court. "There is no evidence that the banks coerced Adelphia to purchase anything."
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