NTL to reveal debt refinancing plans
Cable operator NTL is this week expected to announce how it plans to refinance debts of around Stg £12bn (€19.6bn).
The group, based in Hook, Hampshire, saw debts mount up following a rapid expansion programme in which it picked up franchises and customers, as well as cable networks and infrastructure.
NTL had been expected to update the market on its revised business plan in December but this was put off until the end of January.
The group has denied speculation that it would use the update to say it could pay only half of its debts.
Last month it told investors it had no liquidity issues and was not in danger of breaching any of its banking covenants.
The group’s £12bn (€19.6bn) debt is split between banks and bond-holders.
It today declined to comment on speculation that bond-holders could be offered shares in the group in a debt-for-equity swap.
NTL, which is listed on the New York Stock Exchange and has operations in Germany, Sweden, France and Switzerland, rejected reports that financial difficulties were leading to delays in paying its suppliers.
A report had claimed that suppliers were waiting for up to 57 days before they were paid.
An NTL spokeswoman said: ‘‘Arrangements between NTL and its suppliers are confidential. We have a huge range of suppliers and terms vary enormously.’’
But she added that the group’s suppliers were key to it, and it worked hard to ensure there were no problems.
