NTL - Safe for now.

Charles Slane

From

http://media.guardian.co.uk/city/story/0,7497,685323,00.html

"NTL has reached a life-saving agreement with its public bondholders in a move that will save the group from an Enron-scale collapse.

The UK's largest cable company has agreed to convert £7.3bn worth of debt, held by bondholders, into shares.

NTL, a US-listed company, will file for chapter 11 bankruptcy while the restructure is carried out. This will protect NTL from less sympathetic creditors and enable the company to continue trading.

Barclay Knapp, the chief executive of NTL, admitted the group still had to reach agreement with the banks. They are owed billions of pounds from NTL's £12bn debt pile and must give their consent to the deal.

However, the bank debt is expected to remain in place and NTL executives will keep their jobs while the restructure is completed.

"The agreement we are announcing today is a major step towards our goal of ensuring the successful completion of the recapitalisation we announced in January," said Mr Knapp.

"We are working with all parties in our capital structure, including the company's bank lenders, to finalise these arrangements.

"The US-based chapter 11 process will allow NTL to reorganise and reemerge stronger and healthier without affecting operations."

NTL will be boosted by an extra cash injection of £350m from the bondholders.

NTL will be split into two companies, tentatively called NTL UK and Ireland, which will cover most of the group's assets. NTL Euroco will hold the continental European operations.

Under the terms of the restructure, the company's bondholders will take 100% of the initial equity in the UK operations and 86.5% of the shares in NTL Euroco."

Bateman

These people are gangsters. They make Cablelink look like a profesionally run organisation. Truly shameful, I bet everyone has heard at least one bad story about them. ****ing amateurs, I hope they go west.

icdg

Still studying this, but here's what I make out.

The NTL holding company, NTL Inc, will place itself into Chapter 11 and basically cease to exist.

The operating companies will demerge into NTL UK & Ireland, which will include Cablelink, and a new continental European company. (This reverses a decision NTL made to split ROI from UK a year or so ago. It also means that if NTL UK is taken over by Telewest, NTL Ireland will be taken over with it).

The creditors will takeover these companies. Ordinary shareholders will recieve about 10% of shares in NTL UK & Ireland (which will probably retain the NTL name) following the demerger and a rights issue. Preference shareholders will get about 25% if they buy into the rights issue.

Charles Slane

Originally posted by icdg
The operating companies will demerge into NTL UK & Ireland, which will include Cablelink, and a new continental European company. (This reverses a decision NTL made to split ROI from UK a year or so ago. It also means that if NTL UK is taken over by Telewest, NTL Ireland will be taken over with it).

So the question is - what will this mean for the Irish service ?

Will they now try to move the Irish service into line with the UK one ? In other words, any hope for a better digtal service and cheap cable interent access ?

JTMan

what will this mean for the Irish service

IMO, it is good news to link the irish business with the UK and seperate it from the European business. The European business is seriously loos-making, linking us with a profitable wing can only be good for investment.

cheap cable interent access

we already have cheap cable internet access. It's just the coverage problem which is very slowly improving.

_Kaiser_

we already have cheap cable internet access. It's just the coverage problem which is very slowly improving.

It is? I was of the impression that all work on adding new areas had stopped a LONG time ago?

Mountjoy Mugger

In response to this question:

When do NTL plan to introduce Interactive services
and text to the digital package?, I got this reply today:

We are currently investigating interactive services for DTV, and hope to begin introducing such services on a phased basis within the next 6-12 months. We also hope to add additional channels and digital teletext within this timeframe.

Bateman

6-12 months. Thats shameful, with the money ntl are taking in (in Irish services). As I said before, gangsters. This smacks of them planning to just put it off for a while longer, and then another while. What were all the poxy roadworks for? Did they not know they couldnt have afforded them?

Charles Slane

Originally posted by Fungus
[Bwe already have cheap cable internet access. It's just the coverage problem which is very slowly improving. [/B]

Fungus,

Where is the cheap cable internet access available ?

Does anyone on the boards have it ?

I though it was put on the long finger, but I'd be glad to know that it's a least available to some people. It would give a glimmer of hope for the future.

icdg

Originally posted by Bateman
6-12 months. Thats shameful, with the money ntl are taking in (in Irish services). As I said before, gangsters. This smacks of them planning to just put it off for a while longer, and then another while. What were all the poxy roadworks for? Did they not know they couldnt have afforded them?

No, they didn't. They thought that like in every other market they operated in, they would easily get premission to dig up the roads. What they did not know is that Irish councils (who in fairness are cash strapped due to abolition of council taxes and widespread lack of payment of service charges) would use the opportunity to extract extortionate fees from NTL in bonds, which in many cases the councils refused to repay. In the end it just wasn't worth the effort.

JTMan

Where is the cheap cable internet access available ?

Parts of Dublin6, D12, D16, D22 and D24. Read this:
http://www.boards.ie/vbulletin/showthread.php?s=&threadid=44625&

Does anyone on the boards have it ?

Yes. A good few have NTL Broadand. As do a few of my mates.

Charles Slane

Thanks for the info, Fungus. I don't know how I missed that thread.

cableskeptic

According to ntl's own figures (published last Dec) 500 homes in Ireland were subscribing to their cable modem service.

I doubt very much if that figure has increased in the last few months? ntl will not be able to afford the 100s of millions needed to replace the old-Cablelink network for a long time to come.

JTMan

According to ntl's own figures (published last Dec) 500 homes in Ireland were subscribing to their cable modem service.

Jesus, that is strange. This contradicts with what they said the other day. They said that 11% of people in upgraded area's have cable internet. About 25,000 people live in upgraded area's which would put the figure at about 2,500.

ntl will not be able to afford the 100s of millions needed to replace the old-Cablelink network for a long time to come.

They are currently looking at new technology that MAY enable them to offer 2 way internet over their existing network. so there might be hope... As for digging up everything, I can't see it happening.

icdg

Originally posted by cableskeptic
According to ntl's own figures (published last Dec) 500 homes in Ireland were subscribing to their cable modem service.

Even less, according to the figures I see...

http://www.ntl.com/locales/gb/en/media/press/display.asp?id=552

NTL Ireland
Homes passed 443.8
Customers 369.9
Internet Broadband 0.1

I presume the figures were in thousands...which would make for 100 homes on the broadband service.

Might be more by now...

Originally posted by icdg


Even less, according to the figures I see...

http://www.ntl.com/locales/gb/en/media/press/display.asp?id=552

NTL Ireland
Homes passed 443.8
Customers 369.9
Internet Broadband 0.1

I presume the figures were in thousands...which would make for 100 homes on the broadband service.

Might be more by now...

Jaysus as Bertie would say:D
It's not just the politicians that have taken degree's in Spin!
And I thought Sky were the only others:rolleyes:

Now that NTL Ireland has become NTL Ireland and the UK, I would expect a slower , rather than faster Roll out of digital/internet services, as GB will probably get first call.
And does this mean that NTL Ireland subscribers cash from now on will even more directly be subsidising TV and Internet services in GB.
That would take the biscuit:mad:
mm

cableskeptic

Originally posted by icdg


Even less, according to the figures I see...

http://www.ntl.com/locales/gb/en/media/press/display.asp?id=552

NTL Ireland
Homes passed 443.8
Customers 369.9
Internet Broadband 0.1

I presume the figures were in thousands...which would make for 100 homes on the broadband service.

Might be more by now...

I was using the same data. Go to the 'Business Division' and you will see 200 under 'Wholesale Internet Subs' (not sure what type of customer that is?) and another 200 customers under 'Business Customers' (I was assuming that Business Customers would subscribe to triple-play services?).