The debt-laden cable companies, NTL and Telewest are moving closer to finalising restructuring deals that will ensure their survival in the current difficult market conditions.
NTL admitted on Friday that it had not yet concluded its £7 billion debt-for-equity swap (see
NTL Is Cleared For Reorganisation) but said that it expected to complete the refinancing and emerge from bankruptcy protection “in the very near future”.
Telewest is still in the early stages of a scheme to convert £3.5 bllion of debt into shares (see Telewest Agrees £3.5 Billion Debt Deal). However, it is believed to be on the verge of agreeing a new £2 billion bank loan that will tide it over for the next few months.
Industry observers have long speculated that the two cable operators will join forces once their financial problems are behind them. However, recent reports suggested that NTL wanted to remain independent for the time being at least (see NTL Plays Down Merger Talk).
