WorldCom may not be far behind with their $29Bill debt.

BT are national now after all the international deals got a bit too expensive for them....life is hard for the old telcos at the moment.

Couldn't happen to a nicer bunch of greedy t0ss3rs:

where your over subscribed Frame Really networks now, I asked one sales guy the other day......


[Edited by RVeiga - 5/2/2002 4:57:16 PM]

Cable company NTL is set to file for bankruptcy, after winning approval from banks for a rescue deal which will hand control of the firm to bondholders.
The deal, which involves exchanging $10.6bn of debt for shares in the firm, amounts to one of the biggest defaults in corporate history.

NTL said it would by Monday file for Chapter 11 bankruptcy, which will protect it from creditors while a restructuring programme, involving the company's division into two firms, is completed.

"We expect to emerge late this summer with a strong balance sheet and committed funding which is more than adequate to meet our business plan and any contingencies," NTL chief executive Barclay Knapp said.

The operations of the firm, the UK's largest cable TV firm, would be "unaffected" by the bankruptcy process, Mr Knapp added.

Key talks

The announcement follows months of speculation over the future of NTL which, while widely deemed a potentially promising company, was threatened by its debt burden.

The firm three weeks ago sealed a deal with major bondholders to swap their debt for NTL shares, and inject a further $500m into the firm.

NTL, supported by a 30-day interest payment holiday agreed with bondholders, then sought agreement with banks.

The support of banks, and major investors including France Telecom, will allow the firm to progress a restructuring set for "final consummation" by the end of September, Mr Knapp said.

Stock rejig

The deal will see NTL split into a UK/Ireland firm, initially owned 100% by current bondholders, and a Europe-focused company 86.5% bondholder controlled.

Shareholders including France Telecom will own the balance of shares in the European firm, and the right to buy a holding in NTL UK and Ireland.

"Our plan will achieve virtually all the objectives we set for ourselves in January," Mr Knapp said.

"Although there is still work to do to implement the agreed upon plan, we are optimistic we will be able to compete the recapitalisation in an expeditious manner."

A separate deal announced on Thursday has secured "continued funding" for Cablecom, NTL's Swiss subsidiary, which had looked close to bankruptcy.

City reaction

News of the deal helped revive flagging spirits in the media sector, hit by the closure of ITV Digital and the axing of 1,500 jobs at UK cable firm Telewest.

In the City, shares in Reuters, which fell to among their lowest levels for 3.5 years in morning trade, recovered to stand up 8.5p at 482p by 1515 GMT.

Telewest shares returned to their opening level of 10.5p, having earlier hit 9.25p.

Which one next?

Should call the bookies and see if we can get odds.

Probably Telewest . . . .

. . . . then BT global domination.

Sky Digital will probably monopolise the digital market soon.

You've obviously read it slightly differently to me. Sounds good for NTL. They've finally found a way of ditching all their debt, and are expected to come through the other side (according to some bloke on News 24 anyway).
There are rumours that NTL and Telewest will merge to form a company that can a least have a go at BT.

I'm with Chris. Not so much goodbye as carrying on.

This mean bye bye broad band n Digital then

Yeah, on reading further into it, it would appear that it's not the end of NTL. But whichever way you read it, bankruptcy is bankruptcy ;)

US style bankruptcy under chapter 11 is GOOD for the company as it allows them to trade through their difficulties without creditors being able to force closure etc.

This is unlike UK style bankruptcy, which means curtains down and shut up shop.

NTL and TeleWest already seem to have some form of co-operation agreement for broadband marketing. If you go onto the NTL website and enter your postcode, you will be directed to the Telewest site if your postcode is in their area.

Don't think so

"No doubt looking to calm fears in light of the recent collapse of UK digital TV broadcaster ITV Digital, NTL has stressed that it's business as usual and NTL's operations will continue uninterrupted with customer services unaffected"

Figment - Aaaah I see now. Not good for the creditors tho, is it ?

DJ - probably better for the creditors in the longer term. This way they stand a good chance of getting their money eventually, whereas if the company folded their chances would be zero.

So they declare themselves bankrupt and inject more money into the company, even though it has "failed" once already :confused:

Sounds risky ?