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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.

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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.

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