Telewest reaches agreement on restructuring with bondholders, to own 97% of equity

New York, Sept. 30 - Telewest Communications plc said it reached agreement with an ad hoc committee of bondholders on a restructuring of the company's debt.

Under the agreement, all £3.5 billion outstanding notes and debentures issued by Telewest and Telewest Finance (Jersey) Ltd. will be exchanged for stock, with bondholders owning 97% of the company immediately after the restructuring.

Existing shareholders will receive the remaining 3% of the company's stock.

The senior secured credit facility, vendor financing, trade debt and other obligations of Telewest Communications Networks Ltd. and its subsidiaries will be unimpaired.

Telewest said the agreement is non-binding and is subject to various conditions, including reaching agreement with Telewest's senior lenders on detailed terms of the restructuring and the process for its implementation.

Telewest added that because of the agreement it will defer payment of interest on some of its notes and settlement of some currency unwind contracts pending the completion of the restructuring negotiations.

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