NTL, the cable operator listed in the US but with most of its operations in Britain, is said to be preparing the biggest corporate bond default the world has ever seen.
The ailing group is today (Tuesday) expected to unveil the details of a debt-for-equity swap in which NTL will file for Chapter 11 bankruptcy protection after failing to make an interest payment on $11.5 billion (£8bn; €13bn) of obligations.
Bondholders are then expected to take 95% of the company’s stock, leaving existing shareholders with a total of just 5%. NTL was last night believed to be awaiting permission to go through with the deal from its banks in New York and London.
Data sourced from: The Times (London); additional content by WARC staff