Debt engulfing NTL

Posted: 17/12/2001

In its editorial, the Sunday Business reports “The view in government circles is that BT has dragged its feet on fast internet access … alternative suppliers of broadband services – the cable companies NTL and Telewest – are paralysed by debt.” Indeed, the Lex column in the FT starts “The game may soon be up for NTL”. The Sunday Telegraph informs us that “NTL, which has £12bn in debts and is struggling to avoid bankruptcy, has put off plans to sell its broadcast arm”. The Guardian says “The company is also looking to scale back investment plans as it runs operations for cash rather than growth”, whilst the Independent warns that “NTL’s market value has fallen to about £150m – just over 1 per cent of its debt mountain”. In its Inside Story column, the FT summarises the situation: “When you are in a hole, stop digging”. Yesterday the Sunday Business headlined “NTL struggles to avert debt restructuring.” but by today the FT’s headline was “NTL is set for major restructuring”. Forbidden Technologies is well financed and is insulated from the trauma in the broadband market as our video technology works over narrowband.