Appointment vote of confidence from cabler's creditors
LONDON — Barclay Knapp will remain CEO of U.K.-based cabler NTL after it emerges from Chapter 11 in the U.S., the company’s creditors have determined.The New York stock exchange-listed NTL is undergoing a massive recapitalization, converting £7.3 billion ($11 billion) of debt into equity in two new companies, NTL UK and Ireland and NTL Euroco. Knapp, who is American, is viewed as the architect of NTL’s woes, but also best placed to turn the business around, which despite a debt load of $17 billion is considered operationally sound. The cabler’s difficulties stem from a combination of an aggressive acquisition spree over a number of years and the general downturn in telecom stocks. NTL said its creditors have also approved the appointment of current NTL CFO John Gregg as co-managing director and CFO of NTL Euroco and acting CFO of NTL UK and Ireland. Knapp said: “I am gratified by the support of the creditor’s committee – the future majority owners of the company – for my team. We have been working hand in hand with the committee, our banks, and all of NTL’s constituents to complete a successful recapitalization process as quickly as possible – and we remain on track.” NTL is expected to complete its debt restructuring by September.