Well it is official; NTL Inc. has filed its previously announced reorganization plan under the protective blanket of Chapter 11.
The reorganization plan is based on an agreement with bondholders to swap $10.6 billion in debt into equity in two reorganized companies - NTL UK and Ireland and NTL Euroco. Bondholders will receive 100 percent equity in NTL UK and Ireland and 86.5 percent equity in NTL Euroco. NTL also has received a commitment from certain bonderholders of up to $500 million in new financing for the NTL UK and Ireland operations. The financing is subject to approval by a U.S. bankruptcy court.
According to the filing, Britain's largest cable operator has $16.8 billion in assets and $23.4 billion in debt. NTL's debt has ballooned over the years as the company pushed forward to build cable networks in Europe.
None of NTL's operating companies or customers in the United Kingdom, Ireland or Continental Europe will be affected by the bankruptcy proceedings, the company said in a statement. The company assures creditors, suppliers and employees will continue to be paid as usual.