NTL to confirm it can not pay debts

LONDON - Debt-ridden cable company NTL is to confirm later this week that it can not pay its debts, as a complex plan is unveiled to recapitalise the company and ensure its future.

It has also been revealed that NTL is delaying paying its suppliers. Most suppliers are receiving payments almost 60 days late as the firm attempts to struggle on.



The recapitalisation has been described as the most complex in UK corporate history. It calls for half of the cable firm's £12bn debt to be written off by investors.



NTL has already appointed Credit Suisse First Boston to help it restructure its debts and the company has said it will issue "market guidance" on likely future performance and business plans.



It is thought that NTL will announce better-than-expected customer growth figures as well.



As reported last week, the plan is likely to see Barclay Knapp, CEO of the Nasdaq-listed UK cable operator, lose control of the company as bondholders are asked to convert their debt into equity.



This will see the company's debt fall from £12bn to £5.7bn, which is a figure the company says it can support. The £6.3bn will be written off and effectively give its investors control of the company.



A number of companies have emerged has potential investors in recent weeks, including AOL Time Warner and John Malone's Liberty Media, which already owns 25% of rival UK cable company Telewest.



Although weighed down by debt, NTL is still seen as an attractive investment as it has 3.3m cable customers in the UK.



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