Additional Information


Content

NTL rises on news of debt restructure

LONDON - Shares in NTL soared 23.4% to $0.79 today as news emerged about a restructuring of its £12bn debt, which could see the company try to covert some of the debt into shares as it tries to avoid collapse.

Share this article

The restructuring would be part of a deal with banks and bondholders, which are threatening to call in debts that would force the company into bankruptcy.



Banks and bondholders are drawing up a series of financial covenants that NTL must adhere to, effectively placing the company under their control.



NTL's current share price values the company at around £124.1m, a fraction of its debt mountain, £4.1bn of which is owed to banks alone.


NTL had been hoping to sell its broadcast transmission business for at least £1.6bn. However, its failure to sell it has left NTL with little choice but to cut capital expenditure.



If you have an opinion on this or any other issue raised on Brand

Republic, join the debate in the Forum here.







Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Latest jobs Jobs web feed

FROM THE BLOGS

The Wall blogs

Back to top ^