NTL has emerged from one of the largest US bankruptcies after swapping $10.9 billion (€10.3 billion) of debt for new equity. NTL, whose businesses are in Europe although the company is based in New York, emerged from Chapter 11 after filing for protection from creditors last May 8th.
The company crumbled under the weight of debt it piled up in an acquisition spree at the height of the 1990s technology boom, during which it acquired RTÉ's cable television operation, Cablelink. NTL, whose shares peaked at $136 in January 2000 but closed Friday on the Nasdaq at two US cents, had about 2.8 million subscribers at the time of the filing.
NTL said its reorganisation plan, approved by the US Bankruptcy Court for the Southern District of New York in Manhattan, calls for a swap of the $10.9 billion of debt for equity in a reorganised NTL and NTL Europe.
The new NTL, formerly known as NTL Communications Corp., is made up of the old NTL's British and Ireland businesses. NTL Europe, formerly known as NTL, consists of the old NTL's assets in continental Europe as well as other assets and investments.
The company said bondholders received all of the equity of the reorganised NTL and about 86.5 per cent of the equity of NTL Europe. NTL said it issued 50.5 million new common shares and eight-year warrants to buy about 8.75 million additional common shares. Holders of old NTL shares were wiped out. NTL said it also raised $500 million by issuing $558.2 million in principal of new 19 per cent eight-year senior secured notes, and offering purchasers of the notes 500,000 new common shares. - (Reuters)
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