Cable operator Telewest Communications Plc has hit a snag as it restructures its debts after creditor Credit Agricole SA took legal action to wind the company up after Telewest defaulted on $100 million of interest payments.
London, UK-based Telewest, which has already agreed to a restructuring that will see bondholders take over 97% of its equity, played down the move, insisting it would not impede the restructuring. There was speculation that the French bank may have made the move as a way of getting additional shares under the reorganization.
A further announcement on progress of the deal will be made at the end of this month. The final arrangement is likely to see Liberty Media, which owns 25.2% of the company and has an option to buy Microsoft Corp’s 23.6% stake, position itself to take control.