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.
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.
Latest jobs Jobs web feed
- SHOPPER MARKETING ACCOUNT HANDLERS - London agencies - £38k-55k (perm & freelance) Judi Patton £28-£55k- plus bonus and benefits, London
- head of new business > #1 DIGITAL & CONTENT AGENCY collectivo £60k-£80k plus agency bens, Central London
- Account Director Ball & Hoolahan £55,000 per annum, London
- Senior Account Manager - [Retail / Digital] - Superb agency! £35k - £39k Fill Recruitment Ltd £35k - £39k + bonus & benefits, Central London
- Marketing Manager - FMCG - London or Home counties Stonor £45,000 - £55,000 dependent on experience , London, Essex, Bucks or Oxon
- Creative Director The Marketing Practice Up to £120k dependant on experience , East Hendred, near to Didcot in Oxfordshire