British cable group NTL is on course to emerge from bankruptcy in the next few days, Chief Executive Barclay Knapp said today. NTL is putting the finishing touches to a $10.9 billion debt-for-equity swap - a record corporate bond default.
The US-based firm filed for Chapter 11 bankruptcy protection earlier this year. It had hoped to get out several weeks ago but was held up by the fine print of the deal.
NTL, which provides digital TV, phone and Internet access, has slashed costs and shed thousands of jobs in a bid to turn around the business. It was almost crushed by debt after investing heavily in buying and upgrading cable networks at the technology market's peak in the late 1990s.
Britain's other cable player Telewest is also negotiating a rescue deal with its lenders. Both firms found their debts unsustainable when technology markets collapsed. They also face stiff competition in Britain from satellite TV company BSkyB and former monopoly telecoms company BT Group.
Knapp said that NTL expected to have 500,000 broadband subscribers after the winter holiday season, up from 380,600 at the end of September.
Last month NTL said core earnings rose to £182 million sterling in the third quarter, up 5% on the previous three months. But revenues edged down 1.5% to £617 million.
NTL Ireland reported revenue of £16 million, a 45% increase on the same period last year. Capital spending in Ireland was £3 million in the period.
