Feeds

NTL to file for Chapter 11, split in twain

Deal beckons

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

NTL inc plans to file for Chapter II and split its operations into two, in a deal to rescue the cable company.

The lifeboat has been agreed by a committee of major creditors - mostly NTL bondholders, representing more than half the company's $11bn bonds debt. So it could still founder, if other bondholders disagree.

Either way, shareholder equity is torched. NTL inc. will stil

In return for writing off their debt, the bondholders will end up with 100 per cent of NTL's UK and Ireland ops - initially - and 86.5 per cent of its continental European business. NTL is splitting the two components into separate businesses, removing a big sticking point among many creditors, which expressed their unhappiness with the UK arm being saddled with the lossmaking European sub( to be called NTL Euroco. The operating businesses are not in Chapter 11 or local equivalents, and continue trading as normal.

Stage 2 in the recapitalisation will see a rights issue for the NTL UK and Ireland, Existing NTL shareholders, most notably France Telecom, will have subscription rights equivalent to $10.5bn "enterprise value", entitling them inter alia to buy up to 32.5 per cent of the business.

Shareholders will have 13 per cent of NTL Euroco, which will continue to have an unspecified amount of bonds outstanding. On completion of the recapitalisation, NTL will transfer its 27 per cent stake in Noos SA to France Telecom, in line with promises it made when the telco invested in the business.

If the recapitalisation is approved, NTL - in the UK and Ireland at least - begins to look like a company that may even be able to pay its bills. ®

NTL press release

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.