By Ben King, 27 March 2002 15:40
NEWS NTL has warned investors that it may not be able to keep its services running while it tries to restructure its £12bn debt mountain. The group has said "various uncertainties" are putting pressure on its ability to keep the business running, including its ability to maintain "adequate liquidity". The news came as the group announced its full-year results, which were dominated by an exceptional charge of £8bn caused mainly by redundancies in the fourth financial quarter. The group has cut staff from 21,800 at the start of 2001 to the current level of 14,000. The group's underlying performance was actually better than expected, as the group reported earnings before interest, tax and debt amortisation for the year higher than expected, at £492m. Nonetheless, the group has said that it won't be able to restructure its debt before the end of June at the earliest. The statement that the group is reaching the end of its operating cash may be a warning shot to encourage its investors to reach a deal quickly, but the prospect of an imminent cut-off will worry staff and discourage new subscribers.
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