Tech
Virgin Media is seeking to delay repayments on some of its £4.3bn debt for up to two years.
The cable operator has approached its senior lenders about pushing debt repayments currently scheduled for 2010 and 2011 back to June 2012 in exchange for £70m in fees and up to £50m per year in increased margins.
"Virgin Media has never been in better operational shape and generates significant cashflow," said Virgin Media chief executive Neil Berkett. "These amendments to our senior facilities, if approved, will enhance our financial flexibility and allow management to focus on continuing to enhance operations and grow cashflow.
"We believe that these amendments are in the best interest of customers, stockholders, lenders, employees and other stakeholders in light of the current status of the credit markets."
Virgin Media's top ten banks have offered the unanimous support to the plan. Stock in the company rose in value by 23% yesterday after a precipitous 74% fall in its share price over the last year.
The cable operator has approached its senior lenders about pushing debt repayments currently scheduled for 2010 and 2011 back to June 2012 in exchange for £70m in fees and up to £50m per year in increased margins.
"Virgin Media has never been in better operational shape and generates significant cashflow," said Virgin Media chief executive Neil Berkett. "These amendments to our senior facilities, if approved, will enhance our financial flexibility and allow management to focus on continuing to enhance operations and grow cashflow.
"We believe that these amendments are in the best interest of customers, stockholders, lenders, employees and other stakeholders in light of the current status of the credit markets."
Virgin Media's top ten banks have offered the unanimous support to the plan. Stock in the company rose in value by 23% yesterday after a precipitous 74% fall in its share price over the last year.
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