The UK’s two major cable companies are both nearing the end of restructuring talks that will enable them to continue operations with healthy balance sheets but impoverished shareholders.
NTL Inc said it expects to emerge from bankruptcy protection in the very near future after saying it is close to agreement on a final plan of reorganization. Financing facilities have been extended.
At the same time, Telewest Communications Plc is reported to have agreed new terms on 2bn pounds ($31bn) of loans with eight of its 30 banks as part of a rescue deal. Telewest had hoped to complete negotiations by the end of November, but an announcement is now expected late next week. The company has already agreed to hand over 97% of its equity to its bondholders and now needs the banks’ approval.