Telewest Gains Bank’s Consent For Restructure
UK cable operator, Telewest Communications, today moved closer to what seems to be its inevitable financial restructure as the company’s bank group agreed to permit it to enter discussions with bondholders and other relevant parties.
The discussions will see Telewest formulating a plan to restructure its balance sheet in order to relieve the group of some of its substantial £5.3 billion debt burden (see Telewest Debt Waiver Is On The Cards). It is likely that the company will propose a debt for equity swap to bondholders in order to achieve this.
NTL, the only other major cable operator in the UK, is also instigating a debt for equity deal to alleviate its own huge debt (see NTL Rescue Plans Revealed)
Ahead of the restructure Telewest is seeking to dispose of its 16.9% stake in Scottish media company, SMG (see Telewest Seeks To Divest Of SMG Stake).
Telewest’s share price has plummeted to barely above 1p over the last year or so as its financial position worsened.
