Telewest debts force major rethink

NEWS Ailing cable television provider Telewest is being taken over by its banks and bondholders after its share price fell from 550p to 14p in two years. The company has amounted debts of £5bn and it is thought its creditors will now swap debt for shares in a deal that will see investors such as Liberty Media as well as financial institutions playing a greater role in the management of the firm. Credit ratings agency Moody's has added to the malaise surrounding Telewest, saying it cannot see how the company can now manage its debts, according to the Observer. Telwest's recent woes echo those of NTL - though its rival is mired in even greater debts and further down the line in discussions with its creditors over swapping debt for equity.