Adelphia Offers to Pay $300 Million in Probes

Adelphia Communications Corp. has offered $300 million to settle investigations by the Securities and Exchange Commission and the Justice Department, the company said.

The Colorado-based cable TV company is in settlement talks with both agencies to quash civil penalties over alleged securities violations by members of the founding Rigas family, according to a 2003 annual report released by Adelphia on Tuesday.

Adelphia said the SEC had filed claims in the company’s Chapter 11 bankruptcy case that could total billions of dollars. The SEC’s lawsuit has been tabled by a U.S. District Court until April 29. The annual report said the SEC’s action isn’t covered by bankruptcy protection against creditors.

Adelphia said the Justice Department’s investigation could include the criminal indictment of the company.

In July, John and Timothy Rigas, two of the founding members of Adelphia, were found guilty of looting the company of more than $100 million and hiding more than $2 billion in debt. Sentencing is set for Feb. 23.