Cable TV operator NTL and bondholders have agreed a recapitalisation of the company that will convert $10.6 billion of debt into equity.
NTL and certain subsidiaries will file for Chapter 11 bankruptcy protection to allow the recapitalisation plan to go ahead.
As part of the plan, the company’s bondholders would commit to provide up to $500 million of new financing to its Irish and British operations during the Chapter 11 process and for the post-recapitalised company.
NTL would be split into two companies, one tentatively called NTL UK and Ireland, holding all of its British and Irish assets, and one tentatively called NTL Euroco, holding some of its continental European and other assets.
Mr Brian Moore, managing director of NTL Ireland, said: "Today's announcement is very good news as it signals that we are closer to concluding our recapitalsation program which is designed to reduce our corporate debt level and strengthen our financial position. He said NTL's Irish operation remains unaffected by today's announcement.
He said: "Our business operation in Ireland is both strong and growing and we will continue to work hard to meet and exceed our customers expectations".