Revenue: $1.5 billion

Loss: $4.5 billion

The future is still hazy for UnitedGlobalCom, the linchpin in media mogul John Malone’s plans to dominate the European cable TV market, as it emerges from a slow, painful process to restructure a mountain of debt and streamline its operations.

Denver-based UGC, which is 72% owned by Malone’s Liberty Media , controls United Pan-Europe Communications (UPC), the largest cable operator on the European continent. UGC also runs Austar United in Asia and VTR in Latin America, giving it an aggregate footprint of more than 11 million subscribers.

A deal struck just last month should give the company some extra breathing room to regroup, however. Malone negotiated a debt-swap arrangement with UPC’s creditors to avoid a possible collapse, at the same time consolidating his managerial control over the cable empire.

Deal would covert some $5.4 billion worth of UPC debt into new equity, and give United GlobalCom 66% ownership. UPC, which boasts roughly 7 million European subscribers, has roughly $10 billion in total debt on its books.

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