By Tony Hallett, 9 May 2002 07:00
NEWS NTL has filed for Chapter 11 protection, a move intended to help the debt-laden company restructure. The filing is in line with an announcement made a week ago following weeks of negotiations with the cable company's lending banks and main shareholders, including France Telecom. The US Chapter 11 process is normally used to give a company breathing space for reorganisation when it is in trouble. NTL has stressed its services will continue as usual and creditors, suppliers and staff will continue to be paid as they usually would. Now NTL's $10.6bn in debt will be converted into equity in two companies - NTL UK and Ireland and NTL Euroco. Members of the NTL bondholder group have also committed to an additional $500m in funding for the UK and Ireland operations. There remains speculation that NTL will seek a merger with fellow UK cable company Telewest.
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