Troubled cable operator NTL withheld interest payments worth nearly£70 million sterling today after gaining crucial support from the owners of the debt.
NTL - Britain's biggest cable firm - said it was able to raise the cash but had been told by a group of bondholders not to make the payments while attempts to restructure the debt take place.
The move comes on the same day that the US-based company lost its prestigious place on the New York Stock Exchange.
It has been relegated to the Over the Counter Bulletin Board because its share price rendered the company too small for a main listing.
NTL, whose operational headquarters are in Hook, Hampshire, appointed advisers in January to help restructure debts estimated at around £12 billion.
Borrowings have spiralled after a rapid expansion in which NTL picked up franchises and customers, plus cable networks and infrastructure.
Last week, NTL posted a massive £11 billion loss because of a string of one-off charges reflecting the lower value of its investments.
The company now has a 30-day "grace period" to decide if it will make the interest payments.
It is thought a complete default could pave the way for a debt-for-equity swap, a move which would give bondholders a substantial stake in the business but greatly reduce the value of existing shareholdings. Reports have also suggested that NTL may file for Chapter 11 bankruptcy protection, although the company has refused to comment on either outcome.
The result of the debt restructuring work is not expected until the autumn. However, NTL said the move not to make the interest payments would not affect its business operations in the UK, Ireland and continental Europe.
A statement said it had "sufficient liquidity" to make the current interest payments - a position helped by the £210.5 million due tomorrow from the sale of its broadcasting business in Australia.
NTL added: "The decision not to make interest payments at this time was made at the request of an unofficial committee of the company's bondholders." The company has more than three million residential customers in the UK.
PA