Courtesy of Creditors, Virgin Media Restructures £4.3bn Debt

15 October 2008

LONDON: In a sign that the global lending climate has marginally tilted toward a more benign angle, debt-beset US cable operator Virgin Media – which operates solely in the British Isles – has successfully persuaded its ten largest bank creditors to rearrange its £4.3 billion ($7.50bn; €5.56bn) debt.

The Nasdaq-listed company, formerly known as NTL, said it had the “unanimous support” of its ten largest bank lenders, between them representing 45% to 50% of the cable firm's outstanding loans.

Virgin had expected to begin refinancing next year, but "in light of the disruption of the credit markets, the company has decided proactively to address its amortisation payments due in 2010 and 2011".

Comments Nomura haruspice Martin Mabbutt: "There was a good deal of scepticism that it would be possible [to refinance Virgin Media] so this is a relief – but the company is not out of the woods yet."

Data sourced from Financial Times; additional content by WARC staff