Adelphia CommunicationsÃ¢â‚¬â„¢ security arm in limbo
June 10, 2004
NEW YORK - Adelphia Communications finds itself in the middle of a Chapter 11 restructuring - but how that affects the companyÃ¢â‚¬â„¢s security arm is a question still in need of an answer.
The security division, which operates as Checkpoint Ltd. in Florida and Adelphia Security in New York, is rumored to be a piece of the pie that may be sold to assist the communications company in its financial re-evaluation. But officials are reluctant to comment on any specific plans of attack.
Ã¢â‚¬Å“The company is trying to work out how to handle its separate businesses,Ã¢â‚¬Â said Erica Stull, a spokesperson for Adelphia.
Stull also said the bankruptcy filing and the security business lie at opposite ends of the table even though the security business is fully integrated into the cable companyÃ¢â‚¬â„¢s management tier.
Ã¢â‚¬Å“They are two separate issues,Ã¢â‚¬Â Stull noted.
Adelphia, the fifth largest cable television provider in the country, entered bankruptcy protection in 2002 amid an accounting scandal. Officials say upper management overstated AdelphiaÃ¢â‚¬â„¢s subscriber numbers - counting the companyÃ¢â‚¬â„¢s 60,000 security subscribers as basic cable subscribers.
Checkpoint had previously been active on the acquisition front - building growth through purchases in the early part of the decade. The company even developed an authorized dealer program and tapped California-based Security First AlarmGroup to manage it.
Ã¢â‚¬Å“I did put together a dealer program for them,Ã¢â‚¬Â said Tony Smith, owner of Security First and president of Security Finance Associates, Ã¢â‚¬Å“and nothing ever happened with it.Ã¢â‚¬Â
A spokesperson for Checkpoint fielded calls to AdelphiaÃ¢â‚¬â„¢s corporate communications office, but did mention that the companyÃ¢â‚¬â„¢s buying patterns are on hold.
Stull said Adelphia will continue to handle its restructuring as a financial situation, and the companyÃ¢â‚¬â„¢s businesses will run as usual.
Ã‚Â Ã¢â‚¬Å“We are evaluating all of our options,Ã¢â‚¬Â she said, Ã¢â‚¬Å“and that work is ongoing.Ã¢â‚¬Â
For more on this story see the July issue of Security Systems News.