Hook, U.K.

Revenue: $3.7 billion

Loss: $15.9 billion

NTL, the Nasdaq-listed U.K. cabler, is in Chapter 11 bankruptcy protection while it wraps a $10.9 billion debt-for-equity swap intended to put the company’s operations back on sustainable footing.

Despite showing fair progress in operating figures, NTL was in imminent danger of being crushed by interest payments on its $17 billion debt burden. But in April, it persuaded its bond holders to accept ownership of the company in return for canceling over $10 billion in debt.

The deal will reduce interest payments by $850 million a year, and bring a cash injection of $500 million from bond holders. Existing shareholders, led by France Telecom’s 18%, will have the right to buy up to 32.5% of the overhauled group.

NTL is refocusing on its U.K. and Irish operations. Swiss subsid Cablecom is up for sale, and its minority stake in French cabler Noos may be sold to France Telecom.

Chief exec Barclay Knapp is still overseeing the restructuring, although it is unclear whether he will survive beyond September or October once the process is complete.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Scene News from Variety