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Adelphia gets $1-bn lifeline

New York, Aug. 23 (Reuters): A US bankruptcy court judge approved on Thursday the remaining $ 1 billion of financing for cable television operator Adelphia Communications Corp. to allow the company to continue operations as it reorganises.

The $ 1 billion is the remaining portion of a $ 1.5 billion debtor-in-possession financing package provided by a group of about 80 banks, led by J.P. Morgan Chase & Co. and Citigroup Inc.

The company filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in Manhattan, after the disclosure of about $ 3 billion in off-balance sheet loans to the company’s founders, the Rigas family, guaranteed by the company.

After the family resigned from the company, some of its members were arrested and charged with securities fraud by the US Attorney’s Office in New York, which accused them of looting the firm and treating its coffers like their “personal piggy bank.”

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