Telewest inks deal to wipe out debt

28 Jul 2003

According to the Financial Times, Telewest bondholders have reached agreement over fresh terms for a debt-for-equity swap that will wipe GBP3.5 billion of debt from the cable operator’s books. Sources close to the deal say the new terms, negotiated after US bondholders led by William Huff rejected the original deal, will leave bondholders with 98.5% of the company’s equity and shareholders with just 1.5%. The deal is being seen as a blow to shareholders who will have a substantially diminished equity once the company re-lists.

United Kingdom