Telewest Communications, the struggling UK cable firm, has reached an agreement with bondholders to eradicate £3.5 billion of its £5.3 billion debt in return for 97% of the company’s shares. It has also deferred the repayment of £68 million of interest on bonds as it seeks further approval from investors.
The deal now needs the backing of major shareholders such as Microsoft and John Malone’s Liberty Media. The American cable magnate has a 25% stake in Telewest and is looking to consolidate his interests in Western Europe. He is believed to be in favour of a merger between Telewest and NTL, its UK rival, which is also undergoing restructuring.