NTL appoints debt advisers

January 31, 2002 Posted: 1439 GMT

LONDON (CNN) -- NTL, Britain's largest cable group, has appointed financial advisers to help sort out its £12 billion ($17 billon) of debt and avoid bankruptcy.

After months of speculation, NTL said on Thursday it had chosen three investment banks -- Credit Suisse First Boston, JPMorgan and Morgan Stanley -- to assist in restructuring the company's debt.

"Although we continue to perform well, we believe we need to proactively seek ways to strengthen our balance sheet and reduce our debt," NTL's chief executive Barclay Knapp said in a statement.

"However, it is important to understand that discussions are at an early stage and no decisions have yet been made on the recapitalisation structure."

NTL said it has sufficient funds to complete the recapitalisation, despite market concerns the company might not be able to make some upcoming interest payments.

The company also said it expected to meet its earnings target for the fourth quarter of 2001. However, it said it would suspend market guidance until after the recaptalisation is complete.

Primarily a cable TV operator, NTL also provides telephone and Internet access over its networks. It has about 8.7 million subscribers, mainly in Europe. It has 3 million customers in the UK.

NTL's stock is listed in New York, where it closed at 39 cents on Wednesday. The stock reached a year high of $40.01 and a low of 35 cents.