The beleaguered cable firm, Telewest, has announced that it is to start talks with bondholders and Liberty Media about restructuring its balance sheet.
In a letter sent to shareholders today, the board confirmed that Liberty, which has a 25% share in the company, had made an offer to buy 20% of Telewest’s outstanding bonds.
Chairman Cob Stenham said that negotiations will not begin until Telewest has secured “the necessary waivers and consents from our banks”. However, the company seems set to follow NTL’s example and agree a debt-for-equity swap in the near future.
Liberty currently owns the Dutch-based cable group, United Pan-Europe Communications, and according to today’s Financial Times, has already been offered Microsoft’s 24% stake in Telewest.
Telewest is believed to be £5.3 billion in debt and last month, chief executive Adam Singer warned that the group faces a possible ‘funding gap’ (see Telewest Could Face ‘Funding Gap’, Says Singer). Shares in the company were up Âźp at 3p by mid-afternoon today.
