NTL's operating companies in the UK, Ireland and Europe will not be affected by its decision to file for Chapter 11 banckruptcy protection.
Accountancy Age, 09 May 2002
The NASDAQ-listed NTL joins the list of failed telcos, including Global Crossing and Qwest, by making a special Chapter 11 bankruptcy protection filing.
Under the 'prearranged' Plan of Reorganisation - agreed to by its lending banks, the majority of its public bondholders, and other preferential stockholders like France Telecom - the company will implement its recapitalization plan as announced last month.
In a statement, the company said the filing would not impact on operating companies in the UK, Ireland or Europe and creditors would still be paid in 'the ordinary course of business'.
Under the proposed recapitalization plan, approximately £7.28bn in debt will be converted to equity in two reorganized companies - NTL UK and Ireland and NTL Euroco.
In addition NTL has received a commitment of £343m in new financing from certain members of the bondholder group.
More than 11 million homes in the UK are located within NTL's fibre-optic broadband network, which covers nearly 50% of the UK including, London, Manchester, Nottingham, Oxford, Cambridge, Cardiff, Glasgow and Belfast.
NTL, which emerged from Chapter 11 bankruptcy protection yesterday, has admitted that the outlook for the UK cable market is still bleak and is cutting back on sales and investment projections it made six months ago.
Yet another debt-strapped US phone company has filed for bankruptcy protection. This time its XO Communications which joins a long list of US carriers to file for Chapter 11 protection including Global Crossing, Winstar Communications, Williams Communications and Metromedia Networks.
Bankrupt US carrier, Metromedia Fiber Network has admitted that the US Securities and Exchange Commission has begun a formal investigation into its past accounting practices.
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