Adam Singer has quit as CEO of Telewest following a boardroom tussle for power with the company’s non-executive directors. The move shocked analysts as although it was publicly known that all was not well with the board at Telewest, it was unexpected that Singer would be the one to go.
Telewest plans to replace Singer with its former CFO, Charles Burdick, who is to lead Telewest through a close proximity debt for equity swap in following months. Burdick felt that Singer was the wrong man to lead the company through its restructuring activities.
Thus far Telewest’s strategy seems to be heading in the right direction, as its half yearly results show. But its business division has seen a decline in revenues compared to the same period last year. Its revenues rose 4% to £648.0 million, with capital expenditure falling by 25%.
However, with results heading in the right direction, the company will still be faced with the task of repaying its debt of £3.5 billion. Telewest continues to face pressure from its banks and shareholders to improve its balance sheet, so as to make way for a future merger with NTL and Liberty Media, a US cable company holding a 25% interest in the company.