Cable company NTL has confirmed that it has appointed a number of banks and brokers to undertake a recapitalisation of the company in order to reduce debt.
Credit Suisse First Boston, JPMorgan and Morgan Stanley will advise the broadband cable group on a recapitalisation structure and reduction of its $12 billion debt burden.
CEO Barclay Knapp said: “Although we continue to perform well, we believe we need to proactively seek ways to strengthen our balance sheet and reduce our debt. Consequently, we are now working with CSFB, JPMorgan and Morgan Stanley to make sure that we have the right capital structure in place for the business. However, it is important to understand that discussions are at an early stage and no decisions have yet been made on the recapitalisation structure.”
NTL maintains that it will be cash flow positive by 2004.
NTL loses competitive edge against BSkyB Analysts at ABN Amro believe that the company’s competitive position in relation to satellite broadcaster BSkyB has weakened recently. NTL has shed 9,000 staff and has virtually ceased all network development and sales activity in order to save cash. This, says the broker, has left Sky free to build its share of customers in the pay-TV market.
