Telewest sheds debts and control of the company

Hands over major stake in return for a clean slate...

Debt-laden UK cable company Telewest has reached a financial restructuring agreement that sees its bondholders take a 97 per cent stake in the company, in return for writing off debts totalling £3.5bn. Existing shareholders will keep hold of the remaining three per cent stake. The deal is the latest move by Telewest in its attempts to secure financial stability. Earlier this year the company announced 1,500 job cuts in a bid to save £600m per year. Telewest's debt-swapping follows a similar move by rival cable firm NTL. NTL swapped £7bn of debt for new shares. Analysts have long been predicting the two cable companies are poised to merge. Many believe the restructuring of their respective debts is in preparation for a deal.