Telewest, the smaller of Britain’s two major cable-TV operators, is expected to embark on a capital restructuring scheme which will hand its banks and bondholders greater control over the company.
Owing around £5 billion ($7.1bn; €8.1bn), it is expected that the firm will allow creditors to exchange debt for shares, with US group Liberty Media (owner of 25% of Telewest) thought to be heavily involved in the scheme.
Despite earlier assurances it would not have to restructure its debt [WAMN: 04-Mar-02], Telewest has been forced to act after erosion of confidence in its future prospects sent its share price crashing [WAMN: 05-Mar-02]. On Friday, its stock stood at 14p, a fraction of its 550p level two years ago.
Data sourced from: MediaGuardian.co.uk; additional content by WARC staff