Telewest Agrees Restructuring Deal

Cable firm Telewest Communications has finalised restructuring plans and agreed a debt-for-equity swap that will leave shareholders with just 1.5% of the company.

Protracted talks with bondholders, notably W.R.H Huff Asset Management, Liberty Media and IDT Corporation, have resulted in a deal which will see £3.5 billion of Telewest debts exchanged for shares.

The refinancing process was held up as creditors appealed for a greater share of the company than the 97% proposed. Under the terms of the new arrangement, they will now receive 98.5% of the equity.

The deal is similar to that reached earlier this year by Telewest’s rival NTL. With their debt problems behind them, the two companies are expected to discuss the possibility of merger in the near future.

Shares in Telewest were unchanged at 2.5p by mid-afternoon today.

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