NTL, Britain’s largest cable TV company, is looking to renegotiate a $500 million debt facility in a move that will delay its emergence from Chapter 11 bankruptcy, according to press reports.
Bondholders have already agreed to a $10.6 billion debt-for-equity swap but NTL needs the facility to fund working capital when it emerges from protection from its creditors.
However, uncertainty in the US cable sector has complicated the company’s restructure plans. In particular, the collapse of Adelphia Communications and the ongoing debate over how cable groups account for subscribers have caused a steep drop in the US bond market for cable companies.
NTL is not expected to emerge from bankruptcy until next month and the company has been forced to defend its decision to triple the salary of chief executive Barclay Knapp. It is reported that he is set to receive a cash bonus and shares in addition to a basic $700,000 a year.
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