NTL has no plans to lay off any of its Irish staff due to its $17 billion (€19.3 billion) debt, according to the company's public relations manager, Ms Anna-Maria Barry.
The company said yesterday that staff would be fully briefed on any developments but, as of now, there was "nothing to worry about".
"It's business as usual at NTL, the recapitalisation process announced in January is progressing on track and negotiations are going well," she said.
Her comments came as analysts said NTL's default on Monday on an interest payment indicated some progress had been made in debt restructuring talks but showed the influence of vulture funds which own more than half of NTL's bonds.
NTL, the heavily indebted parent of Britain's leading cable group, missed $75 million in coupon payments on high-yield notes due on Monday. The company said they could have paid, but a committee representing owners of more than 50 per cent of its bonds had asked them to be withheld.
One analyst said four US-based distressed investment funds made up the committee. These so-called vulture funds snap up bonds at low prices in the hope of taking over the assets of the company after a restructuring or liquidation.
NTL admitted last Wednesday that it might run out of money while it restructures, but it has dismissed reports of plans for a Chapter 11 filing as "speculation".
As for the $75 million payment, NTL has a 30-day grace period during which it will remain in technical default. Some analysts saw this cash hoarding as a sign of progress.
"The fact that they have missed the coupon seems to indicate that negotiations are moving along faster than anticipated so generally it should be seen as a good thing," said another London-based telecoms analyst.
Ms Barry said that, far from seeking to shed jobs, the company has vacancies in a number of areas. However, SIPTU broadcasting branch secretary Mr Jimmy Jordan has sought discussions with the company on its future plans. He confirmed that so far the company had given no indication to shop stewards that it planned to reduce employment in the Republic.
NTL currently employs 440 people in the Republic. It shed less than 50 jobs as a result of a restructuring deal last February. NTL operates mainly in Dublin, Waterford and Galway.
Like Chorus, which is half-owned by Independent News & Media and covers other regions of the Republic, NTL faces a tighter regulatory regime and competition in the future. From March 1st, the two main Irish cable companies lost exclusive rights to broadcast in their respective franchise areas.
There has been speculation that both firms might be put up for sale by their parent organisations to reduce debts built up during the internet boom.
(Additional reporting, Reuters)
