NEWS
NTL has been given the green light to push ahead with a cash for equity refinancing programme, a move which could prove a prelude to a merger with fellow cable company Telewest.
Yesterday NTL's lenders agreed to the equity deal which includes support for the Swiss cable unit, Cablecom. Some banks initially wanted to see Cablecom sold off.
NTL owes $17bn and will file for Chapter 11 bankruptcy protection as part of the restructuring package.
Barclay Knapp, the firm's CEO, was in bullish mood following the deal. He told The Times that a merger with Telewest was definitely an option. "It makes a lot of sense for us to get together and we look forward to taking that issue up again when we come out of this process," Knapp said.
The same paper also quotes Telewest's finance director, Charles Burdick, as saying the commercial logic for a merger was "strong, if not stronger than ever".
