The company will now ask bondholders, who are owed around £3.6 billion by Telewest, to swap their debts for shares.
Once the restructuring is complete, Telewest is expected to merge with the UK’s largest cable operator, NTL. NTL began a similar restructuring program earlier this year.
US cable tycoon John Malone is likely to play a key role during both Telewest’s restructuring and any possible merger talks. Malone already owns 25% of Telewest, 11% of its bonds, and is likely to buy up more debt in the near future.
