NTL pushes ahead with debt swap

Green light given thumbs-up

By Tim Richardson • Get more from this author

Posted in Business, 3rd May 2002 09:15 GMT

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Bankers have given NTL the thumbs-up to go ahead with plans designed to rescue the indebted cableco.

Around $10.6 billion in debt will be transferred into equity and the company split in two. Plans for the rescue were released earlier this month but needed the green light from the company's banks. That approval has now been given. NTL expects to complete the debt-for-equity swap later this summer.

No doubt looking to calm fears in light of the recent collapse of UK digital TV broadcaster ITV Digital, NTL has stressed that it's business as usual and NTL's operations will continue uninterrupted with customer services unaffected.

Said president and CEO Barclay Knapp: "We are very pleased that the company and all representative groups have reached an agreement in principal on an extremely complex recapitalization in record time.

"We now expect to emerge late this summer with a strong balance sheet and committed funding which is more than adequate to meet our business plan and any contingencies.

"Finally, we will emerge a much stronger competitor, having put in place not only a new balance sheet, but also a clearer and tighter operational focus as a result of these events." ®

NTL to file for Chapter 11, split in twain

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