United Pan-Europe may file for bankruptcy protection
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Your support makes all the difference.The Dutch cable company United Pan-Europe Communications yesterday admitted it could file for bankruptcy protection if it fails to get a planned financial restructuring signed off.
"If United, [UPC's controlling shareholder] UPC and the noteholders are unable to conclude documentation for the debt restructuring agreed in principle, or if UPC is otherwise unable to successfully complete an agreed restructuring plan for the company's debt, UPC may seek relief under a debt moratorium," the company said.
In documents filed with the US Securities and Exchange Commission, UPC added that if no other agreement could be made, it might begin bankruptcy proceedings. Such a move would enable the company to forge ahead with its proposed rescue plan, put forward by John Malone's Liberty group, even if some of its bondholders do not approve.
UPC is said to be planning a similar course of action to the Dutch telecoms company Versatel, which recently filed for protection to effect its own debt restructuring. Its parent company UGC, controlled by Mr Malone's Liberty group, and a bondholder group agreed in principle to a $5.4bn debt-for-equity swap last month.
Should the deal go through, analysts predict Mr Malone will try to tie up his cable interests in Europe. His Liberty group also owns just over a quarter of the UK cable company Telewest, which is also expected to carry out a restructuring.
Telewest, which has £5.3bn of debt, recently admitted it was considering carrying out at a debt-for-equity swap and other options to secure its future. As part of a way to influence the future of that company, Liberty launched an offer to buy up Telewest bonds although the offer has since been aborted.
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