Debt-laden cable company NTL (see NTL Rejects Liberty, But Merger With Telewest Could Still Make Sense) announced this morning that a deal with bondholders had been agreed in principle which would see operations divided between two companies in order to facilitate recapitalisation.
The company’s operations are to be divided into two with one company – provisionally called NTL UK and Ireland – will control all UK and Ireland assets and another – NTL Euroco – will hold certain European and other assets. NTL stressed that services will continue uninterrupted during this restructuring of its businesses.
NTL president and CEO, Barclay Knapp, said: “The agreement in principle we are announcing today is a major step towards our goal of ensuring the successful completion of the recapitalisation that NTL announced in January. We are currently working with all parties in our capital structure, including the CompanyÂ’s bank lenders, to finalise these arrangements. The US-based Chapter 11 process will allow NTL to reorganise and re-emerge stronger and healthier and without affecting operations.”