Bondholders Push For More In Telewest Debt Swap

The plan is for Telewest’s bondholders to subsume £3.5 billion of the company’s £5.3 billion debt in return for control of around 97% of the group’s equity (see Telewest Agrees New £2.2bn Bank Lending Terms). It is thought that bondholders are now holding out for an even greater share of equity.

Telewest this morning said that the Bondholder Committee is requesting ‘certain changes’ to the terms of the restructuring agreement and that further negotiations will be required to satisfy all parties. This is a set-back in the restructuring process and was described by managing director, Charles Burdick, as a disappointing development.

The Financial Times today reports that the pressure from bondholders is being led by US financier, William Huff, himself a leading investor in Telewest. Huff is thought to be pushing for a 99% equity share following the restructure, leaving existing shareholders with virtually nothing.

Despite the wrangles, Burdick says that he still believes that the financial restructure – already in its final stages – will be completed successfully.

Shares in Telewest Communications were down by 12.6% at 1.7p by midday today.