A string of bad news…

You almost have to feel sorry for the Rigas family, the former barons of Adelphia Communications (ADELQ.PK). Almost, but not quite. On Friday, John Rigas and his son, Timothy, were indicted for tax evasion. Prosecutors charged that the pair participated in a $300 million tax evasion scheme.

What’s worse than having the IRS hot on your tail? Not much. But having the company that you founded reject the sweetheart deal that you negotiated on your way out the door isn’t too pleasant either. Buried in footnote #6 in the K that Adelphia filed on Thursday was a disclosure that the company had finally decided to reject the so-called “Rigas Family Agreement”. Earlier Adelphia filings said the company hadn’t decided what to do. A link to the agreement is here.

Under that agreement, Papa John was supposed to receive $1.4 million a year for three years, get lifetime healthcare coverage for him and his spouse, and other perks, such as use of the corporate jet, office space, etc. The agreement also covered a bunch of other things, including stock held by the Rigas family and the $26 million parcel of land that the Rigas’ purchased with Adelphia funds as a buffer for their homes. In the K, Adelphia said it was rejecting the plan under the provisions of the bankruptcy code.