Telewest Communications’ planned disposal of its 16.9% stake in Glasgow-based media group, SMG, has been passed by shareholders at the cable company’s Extraordinary General Meeting.
Cob Stenham, chairman of Telewest said: “Any disposal of our interest in SMG would form part of our efforts to address the Group’s funding position. We wish to preserve the Company’s flexibility at a time of constrained capital markets and as we enter into restructuring discussions. Despite the uncertainties caused by the restructuring process, our underlying operational business continues to be sound.”
Telewest is on the verge of restructuring its balance sheet in order to relieve some of its £5.3 billion debt burden (see Telewest Gains Bank’s Consent For Restructure). It is likely that the company will propose a debt for equity swap to bondholders in order to achieve this.
A report in yesterday’s Financial Times claimed that the company is planning to make 1,000 further redundancies by the end of 2003, in order to drive down operating costs. Telewest denies that this is the case.
