Adelphia files for Chapter 11 protection

Adelphia Business Solutions announced Wednesday that it filed for Chapter 11 bankruptcy protection, the latest telecom carrier to buckle under the conditions plaguing the sector. The company, which provides communication services to businesses, attributed its situation to the difficulty in raising funds from the capital markets and the overall slump in the telecommunications industry. Adelphia announced earlier this month that it would not pay a $15.3 million interest payment to bondholders. The company also secured a $135 million loan from parent company Adelphia Communications and the Rigas family that it will use to keep its business running.

The company joins other carriers that face a maelstrom of financial troubles. Global Crossing and McLeodUSA filed for bankruptcy earlier this year. Moreover, Metromedia Fiber Network warned investors last week that it may be headed toward bankruptcy court while Williams Communications has struggled recently. Market conditions have also hit more established carriers such as Qwest Communications International, which renegotiated its credit agreement with lenders.