International cable television group NTL, which has operations in the Republic, has won approval from a US bankruptcy court for its reorganisation plan. The ruling, handed down in a Manhattan court late on Thursday, means the way is now clear for the group to emerge from Chapter 11 bankruptcy protection.
In May, the company, which supplies television services to almost 300,000 Irish homes, filed one of the largest US bankruptcies ever after it lost €16 billion last year, most of which stemmed from asset write-downs resulting from the decline in telecoms valuations around the world.
Just weeks after those losses were announced, the group won crucial approval from its lending banks to proceed with a rescue plan involving a $10.6 billion (€10.8 billion) swap of bond debt into bond equity, which reduces NTL's $17 billion debt to around $5.8 billion.
Thursday's ruling effectively paves the way for that plan, an NTL spokeswoman in the Republic said yesterday. She added the firm expects to emerge from Chapter 11 next month.
As part of the reorganisation approved by the court, NTL will be split into two groups. NTL Communications is to be renamed NTL Incorporated and will be a holding company for all of NTL's businesses in the Republic and Britain.
NTL Incorporated will be renamed NTL Europe and will be the holding company for all of NTL's investments in Europe.
Mr Barclay Knapp will remain as the group's chief executive and president but NTL Ireland gets a new managing director. Mr Graham Sutherland takes over at the helm of the Irish operations from Mr Liam Duggan, who had been acting managing director since the sudden departure of Mr Brian Moore from the company in July. Mr Duggan returns to his sales director position in the Republic.
Mr Sutherland has been with NTL for just over a year and was deputy managing director of the ntl:home Celtic Business Unit. Before joining NTL he held a number of senior positions, including finance director of Bombardier Business Jet Solutions in Dallas, Texas, and managing director of Maydown Precision Engineering in Derry.
Mr Barclay Knapp said in a statement he was delighted the group is emerging from Chapter 11 so soon.
