UK cable operator Telewest Communications has admitted that it could face a possible funding gap. The company had maintained that it was fully funded over the last few months. The news that Telewest could be facing a funding gap has re-ignited fears that the company could follow other cable operators into debt for equity restructuring.
Telewest’s CEO, Adam Singer, told the company’s AGM that Telewest needs £200 million in vendor financing. The company also has to pay a further £105 million to satisfy its international bank facility.
Company officials believe that Telewest is continuing to perform strongly despite challenging economic conditions. The company has pointed to the operating performance of its broadband unit as evidence of success. Telewest has attracted around 21,000 UK broadband subscribers since May 2.