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28/03/2002
NTL offer debt-for-equity deal to creditors
Cash-strapped NTL are set to offer creditors a deal which it is hoped will allow the cable company to stay afloat as it tries to reduce its £17 billion debts.
It is believed that NTL may have only £500 million operating cash left in the pot, which equates to three months liquidity as the company struggles under the weight of massive interest payments to creditors. Under the proposal, NTL will offer creditors equity in return for a reduction of debt, but the company is working against the clock as the prospect of insolvency looms.
NTL Chief Executive Barclay Knapp said that talks with the creditors had been "constructive".
He added: "Our major focus now is fixing our balance sheet, which is encumbered with a high level of debt relative to our cash flow. Our recapitalisation process is underway and making progress. We are in the midst of a constructive dialogue with our bondholders, bank group and potential investors."
Creditors will be hopeful that an extra £300 million can be raised through the sales of some of its assets in the short term. However, the debt-for-equity swap could be the key to NTL's long-term solvency and Mr Knapp will be able to point to the company's rise in underlying earnings to £492 million as a further enticement to accepting an equity deal. The profits rise was a significant improvement on the £229 million achieved in the previous financial year.
Overall NTL posted a net loss of £11.1 billion that included an £8 billion charge to cover asset write-downs and redundancy costs. To cut costs, NTL made 6,500 redundancies and the company now has about 13,600 employees.
The company ran into trouble last year during an expensive restructuring programme that involved a massive expansion in the UK.
(GMcG)
It is believed that NTL may have only £500 million operating cash left in the pot, which equates to three months liquidity as the company struggles under the weight of massive interest payments to creditors. Under the proposal, NTL will offer creditors equity in return for a reduction of debt, but the company is working against the clock as the prospect of insolvency looms.
NTL Chief Executive Barclay Knapp said that talks with the creditors had been "constructive".
He added: "Our major focus now is fixing our balance sheet, which is encumbered with a high level of debt relative to our cash flow. Our recapitalisation process is underway and making progress. We are in the midst of a constructive dialogue with our bondholders, bank group and potential investors."
Creditors will be hopeful that an extra £300 million can be raised through the sales of some of its assets in the short term. However, the debt-for-equity swap could be the key to NTL's long-term solvency and Mr Knapp will be able to point to the company's rise in underlying earnings to £492 million as a further enticement to accepting an equity deal. The profits rise was a significant improvement on the £229 million achieved in the previous financial year.
Overall NTL posted a net loss of £11.1 billion that included an £8 billion charge to cover asset write-downs and redundancy costs. To cut costs, NTL made 6,500 redundancies and the company now has about 13,600 employees.
The company ran into trouble last year during an expensive restructuring programme that involved a massive expansion in the UK.
(GMcG)
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16 April 2002
NTL's miracle escape from liquidation
CEO Barclay Knapp saw NTL default on an Enron-beating debt mountain of £7.3 billion on Tuesday 16 April, but unlike his energy sector counterparts, managed to haul the UK's biggest cable operator back from the brink of liquidation.
NTL's miracle escape from liquidation
CEO Barclay Knapp saw NTL default on an Enron-beating debt mountain of £7.3 billion on Tuesday 16 April, but unlike his energy sector counterparts, managed to haul the UK's biggest cable operator back from the brink of liquidation.
10 June 2002
NTL reveals 'improved' digital package
NTL, one of the UK’s leading broadband services company, have unveiled plans for a significantly improved digital TV product with over 25 new TV channels, 17 new radio channels as well as new look Interactive and EPG services, with more features and enhanced functionality.
NTL reveals 'improved' digital package
NTL, one of the UK’s leading broadband services company, have unveiled plans for a significantly improved digital TV product with over 25 new TV channels, 17 new radio channels as well as new look Interactive and EPG services, with more features and enhanced functionality.
24 June 2002
Bondholders may have NTL chief replaced
Barclay Knapp's reign at NTL could soon be over as bondholders are reported to have called in a top corporate headhunter to garner a replacement CEO at the troubled cable company. According to a report in The Sunday Telegraph, Miles Broadbent has been talking to a former executive at NTL's main rival Telewest to succeed Mr Knapp.
Bondholders may have NTL chief replaced
Barclay Knapp's reign at NTL could soon be over as bondholders are reported to have called in a top corporate headhunter to garner a replacement CEO at the troubled cable company. According to a report in The Sunday Telegraph, Miles Broadbent has been talking to a former executive at NTL's main rival Telewest to succeed Mr Knapp.
02 April 2002
Bondholders allow delay in NTL's debt repayments
A committee of bondholders in NTL have told the debt-ridden cable company not to pay the £66 million in interest that was due to be paid on Monday April 1. The move affords temporary relief to the UK's biggest cable company, which is currently operating with debts totalling £12 billion.
Bondholders allow delay in NTL's debt repayments
A committee of bondholders in NTL have told the debt-ridden cable company not to pay the £66 million in interest that was due to be paid on Monday April 1. The move affords temporary relief to the UK's biggest cable company, which is currently operating with debts totalling £12 billion.
08 April 2002
NTL reported to be close to securing debt deal
Media reports are suggesting that cable company NTL is close to agreeing a deal with bondholders which would allow it to escape forced liquidation. The reports suggest that banking sources are believed to be on the verge of approving a debt-for-equity swap for the debt-ridden cable firm.
NTL reported to be close to securing debt deal
Media reports are suggesting that cable company NTL is close to agreeing a deal with bondholders which would allow it to escape forced liquidation. The reports suggest that banking sources are believed to be on the verge of approving a debt-for-equity swap for the debt-ridden cable firm.
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