By Aled Herbert, 28 January 2002 08:20
NEWS NTL is to warn its investors of its debt-restructuring plans this week in a move that is likely to heavily dilute their interest in the cash-strapped cable company. The New York-listed company has appointed Credit Suisse First Boston, JP Morgan and Morgan Stanley to advise it on the best strategy for restructuring its $17bn debt. The debt is divided approximately 50-50 between bondholders and a number of banks, The Times reports. Shareholders and industry watchers alike have cast doubts about the cable provider's ability to pay off its considerable debt mountain. A cash-for-equity swap is thought to be the most likely scenario for the company with creditors taking control of up to 70 per cent of the company in exchange for a 50 per cent reduction of its debt. A full-scale restructuring is expected to take at least 12 months to complete. NTL was denied key vendor financing just before Christmas, endangering its attempts to extend its cash reserves beyond the next 12 months.
In order to post a comment you need to be registered and logged in.
Log in or create your silicon.com account below