Cable firm NTL confirmed yesterday it was running out of time and money as it talked to lenders about refinancing and to strategic investors about a possible rescue.
The firm, which supplies television services to almost 300,000 Irish homes, also reported a 2001 loss of more than $16 billion (€18 billion), most of which stemmed from asset write-downs that take account of the decline in telecoms valuations.
The group said it was talking to bondholders and lenders and was on track to complete its debt restructuring by the third quarter. It was also talking with potential investors about a cash infusion to ensure it had money to run the business.
"There can be no assurance that we will successfully complete a recapitalisation or refinancing in a timely manner in order to sustain the company's operations," NTL said. The company declined to name potential investors, but industry sources say US cable group Liberty Media, owner of a large part of Britain's other cable group Telewest, has been talking to NTL about a possible investment. Analysts believe such a deal would be a prelude to a long-anticipated merger between the two firms as they try to compete with British pay-TV market leader BSkyB.
An NTL spokeswoman would not comment on whether the firm had received any expressions of interest from potential bidders for its Irish operation yesterday. She said: "All of our assets are part of the restructuring process and we are not ruling anything in or out."
Media reports have speculated the firm may accept a bid for its Irish business, which makes up a tiny part of its global operations.
NTL Ireland also reported results yesterday showing a small rise in revenues in fourth-quarter of 2001. Revenues during three months were £12 million sterling (€16.5 million), up from £11 million in the fourth quarter of 2000. Earnings before interest, tax and amortisation were £3 million in the fourth quarter, up from £1 million on the same period in 2000.
Mr Brian Moore, managing director of NTL Ireland, said the Irish business was healthy and performing well and had achieved all its milestones for 2001. "We had a year-on-year revenue increase of 6 per cent to €69.8 million and EBITDA increased 24.8 per cent to €11.4 million.
He said the firm had about 15,000 digital television customers and about 80 per cent of customers on its network could now upgrade to digital television.
The firm would begin testing voice over internet protocol technology shortly to assess whether it could offer high-speed internet services over its existing network, he added.
Meanwhile, NTL chief executive Mr Barclay Knapp declined to take questions in a conference call with analysts and reporters. "Investor focus is likely to remain on the restructuring for the time being and we haven't been given much new information about that," said Mr Chavan Bhogaita, a telecoms credit analyst at Bear Stearns in London.
