NTL files for Chapter 11
The saga continues
NTL filed for Chapter 11 bankruptcy protection yesterday as part of its ongoing strategy to save the business from crippling debt.
The move follows last week's go-ahead from the banks to proceed with a $10.6 billion debt-for-equity swap.
Once again NTL stressed that its operation in the UK, Ireland and Continental Europe would not be affected by the decision and that it was business as usual.
Trade creditors, suppliers and employees would continue to be paid in the ordinary course of business, the company said in a statement.
Under the proposals NTL will be split into two companies - NTL UK and Ireland, and NTL Euroco.
NTL will also receive up to $500 million in new financing for NTL's UK and Ireland operations, although this is subject to approval by the US Court.
In a statement NTL said: "This new financing will further ensure that the company and its business operations have access to sufficient liquidity to continue ordinary operations."