Dutch cable operator United Pan-Europe Communications (UPC) has filed for Chapter 11 bankruptcy protection the US after reaching agreement with its biggest shareholder UnitedGlobalCom (UGC), in support of a recapitalisation plan for UPC. UGC will increase its stake in UPC to 65.5% following a debt for equity swap, wiping out around two thirds of UPC’s E10 billion debt. Bondholders will own around 33% of the restructured company, and existing shareholders just 2%.
John F. Riordan, President and CEO of UPC, said: I am pleased to announce that we have now reached agreement with our key stakeholders regarding UPC’s Recapitalisation. This will recapitalise UPC to provide a strong and stable balance sheet at a time when our efforts to deliver operational improvements continue to yield strong results. This is excellent news for UPC customers, suppliers, employees and other stakeholders. I would like to thank them for the dedication, loyalty and patience that they have shown throughout this process and to reassure them that it remains ‘business as usual’.