A committee of Adelphia bondholders has taken the unusual step of suing 450 banks involved in $5.6bn (€5bn) of loans to the bankrupt telecommunications company in a fight over its assets.

The lawsuit alleges that banks let the Rigas family, which controlled Adelphia, use certain loans taken in the name of the company for personal purposes. The committee is suing all banks involved in these loans - called "co-borrower credits".