Debt-laden Telewest has agreed to meet bondholders and key shareholder Liberty Media over plans to restructure its finances. The move comes after Liberty offered to buy 20 per cent of Telewest's bonds.
That has increased speculation of an imminent debt-for-equity swap at the group, similar to what rival NTL agreed to last year.
Telewest is weighed down by £5.3 billion of debts and may run out of cash before it can break even.
Liberty, which owns 25.1 per cent of Telewest shares, has already revealed that investors accounting for 16 per cent of the company's bonds have accepted its tender offer.
An unnamed group of bondholders has previously asked for an urgent meeting with both Liberty and Telewest to air its own plans to restructure the debt.
Chairman Mr Cob Stenham says the talks will not start until Telewest has secured "the necessary waivers and consents from our banks".
Analysts believe a debt-for-equity swap remains the most likely outcome, and could take place within the next six months.
"In the first half of this year you saw the occasional bit of newsflow on this, now it's starting to gain momentum," says Mark Davis, telecoms analyst at West LB Panmure.
Telewest's shares, which have lost 99 per cent of their value on the London stock market in the past two years, were up 0.38p at 3.20p by midday, a climb of 13 per cent