NTL: It's a company of two halves

Cable giant splits under debt recovery plan...

NTL is to file for Chapter 11 after reaching an agreement with its bondholders to convert its $10.6bn debt into equity. Under the agreement, NTL will split into two companies, NTL UK and Ireland and NTL Euroco, which will oversee most if the company's continental European assets. The bondholders will now receive 100 per cent of the shares in NTL UK and Ireland and 86.5 per cent of the NTL Euroco equity. As a result, the company will receive up to $500m in new financing from its bondholders during the restructuring, but all bank debt will remain in place. NTL said operations will continue as normal and the current management team will remain in place throughout the recapitalisation process.