The UK’s second largest cable operator Telewest Communications has secured the necessary waivers and consents from its bank group to go ahead with its planned debt restructuring
The company will now ask bondholders, who are owed around £3.6 billion by Telewest, to swap their debts for shares.
Once the restructuring is complete, Telewest is expected to merge with the UK’s largest cable operator, NTL. NTL began a similar restructuring program earlier this year.
US cable tycoon John Malone is likely to play a key role during both Telewest’s restructuring and any possible merger talks. Malone already owns 25% of Telewest, 11% of its bonds, and is likely to buy up more debt in the near future.