NTL File for bankruptcy

Son of Blam

"NTL set to file for Chapter 11 following debt-for-equity deal"

http://globalarchive.ft.com/globalarchive/article.html?id=020503001090&query=NTL

So does this means NTL are officially bankrupt? (Some chapter 11 info can be found here: http://www.sec.gov/investor/pubs/bankrupt.htm)

lynchie

AFAIK, Chapter 11 protection allows a firm to continue working while protecting it from its creditors. It usually aims to stop it shutting down straight away.

dahamsta

What lynchie said. Chapter 11 is "bankruptcy protection", it gives the company some time to restructure their business and debt. It also gives creditors a chance to actually get paid.

http://www.google.com/search?q=%22chapter+11%22+protection+definitions

adam

sceptre

^^ what the two lads said. Basically, NTL (what does "NTL" stand for, anyone?) have recapitalised their 11.8bn pounds debt. Which means that the banks now own 97% of the company.

So chapter 11 for NTL is actually a step forward towards keeping the company afloat

Moriarty

Originally posted by sceptre
(what does "NTL" stand for, anyone?)

Northern TeLecom.

oscarBravo

Originally posted by Moriarty

Northern TeLecom.

Um, no. National Transcommunications Limited, actually.

http://www.ntl.com/locales/gb/en/investors/aboutus/historyindepth.asp

damnyanks

Does that mean that NTL will have more cash and possibly expand there cable modem area in Dublin?

kamobe

Doubt laying cable in dublin is their top priority right now

Elmo

NTL = National Telephone Lines.

Are they not looking to Sell NTL Ireland at the moment

longword

Originally posted by Elmo
Are they not looking to Sell NTL Ireland at the moment

Their reason for selling NTL Ireland would be to reduce their crippling debt. That's not quite so pressing a problem now that they've got a deal with the banks. We're a pretty decent market for the company. One of the highest rates for cabled households in Europe. A growing target for premium TV services, not just cable modems. As it stands they're making a profit out of us, which is more than can be said for some of their other operations. Not nearly enough profit to justify the half a billion they blew on it though.

Now that NTL UK/Ireland is a separate company, my guess is they should be in a position to expand their operations here. However the clock is ticking. They have to do it soon, while Eircom still thinks it's acceptable fo charge 49 euro ex VAT for a partial wholesale DSL service - and while the ODTR isn't minded to beat them up about it.

Snaggle

A company only files for chapter 11 if it is unable to pay its debts (which means it is bankrupt). I think people are saying that NTL weren't bankrupt because they think that bankruptcy means that a company has to cease operations and liquidate its assets (which is chapter 7). That's not true, filing for chapter 7 or chapter 11 means that you are bankrupt, the difference is that chapter 11 means you may carry on as a business with your creditors taking over whatever company assets it takes to cover your debt.

Shinji

Yep snaggle - I think the basic problem is that people don't understand what bankruptcy actually entails. This isn't Enron or ITV Digital style meltdown, it's a restructuring of the company into a form which is better able to handle its debts.

I still put good odds on Telewest buying out NTL UK/Ireland in the next 18 months.

damnyanks

So does this mean any chance of them furthering the upgrade of the cable lines will stop for sure ?

BuffyBot

Originally posted by Shinji

I still put good odds on Telewest buying out NTL UK/Ireland in the next 18 months.

I don't know about that. Telewest are in no great shape either. They are deeply in debt and recently announced they were shedding 14% of their staff in order to cut costs. Telewest is currently 5.3bn in debt