Telewest takes next restructuring step

Telewest has announced that it has reached a "non-binding agreement" with the steering committee of the company's senior lenders as well as the influential ad hoc bondholder committee, for terms of revised banking facilities.

Announced to the London Stock Exchange this morning, the revised facilities amount to £2.155bn, comprised of loans, an overdraft, and other revolving credit facilities. Most of the new facilities mature at the end of 2005 with the balance being due on June 30, 2006.

These new facilities are conditional on Telewest pressing ahead with its balance sheet restructuring - in which US cable giant Liberty Media, headed by John Malone - is expected to play a role alongside Telewest's existing bondholders in an ntl-style debt-for-equity swap. Telewest did note that the new facilties would enable the company to maintain operations after restructuring is completed.

Telewest chief Charles Burdick said in a newswire release: "This agreement with our banks is another important step forward in Telewest's balance sheet restructuring process.

"Restructuring discussions continue and I will update all stakeholders when we have further progress to report."

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