Cable company Telewest is widely tipped to join rival NTL in looking to a financial restructuring to bail itself out of debt.
Telewest said today that it is in talks with institutional shareholders about moves to reduce £5bn of debt, but stopped short of an announcement on a restructuring decision.
Industry watchers believe that the company is holding fire on any decision until the fate of NTL becomes clear.
NTL, which is battling with debts of £12bn, could be about to lose its chairman George Blumenthal and chief executive Barclay Knapp in a boardroom coup sponsored by the company's biggest lenders.
Newspaper reports have indicated that representatives of the various lenders have already approached industry high fliers to take over the company.
A spokesman for NTL said that no date has yet been set for a meeting to discuss the company's financial situation and that it will meet targets released at the end of last year.
Although NTL has so far managed to meet all its financial forecasts and bond interest payments on time, analysts are still waiting for the 2002 earnings guidance report.
Tim Johnson, principal analyst at researcher Ovum, explained that the financial restructuring could be good news for the long-term viability of NTL.
"Everybody accepts that NTL is going to have to be refinanced from debt to equity and, if that is done right, it will hopefully put the UK operation on a much better footing," he said.
"The basic fact is that cable companies have amazing underlying revenue. The cable network is a utility and a sound financial proposition if not weighed down by the millstone of debt," he added.
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