Virgin Media has won the approval of 10 of its largest creditors to rearrange £4,324 billion in debt. Between them the companies represented almost 50% of the UK cablenet’s debt.
The credit had led Virgin to bring forward plans to refinance its debt obligations that were previously scheduled for 2009. In a statement the company said the refinancing would remove any concerns over its ability to meet its amortisation obligations. The move will allow Virgin to postpone the majority of its major debt repayments until June 2012 rather than the previous schedule of 2010. It might also ease pressure on the cablenet to sell parts of the company, such as its television interests, including its stake in UKTV.
“Virgin Media has never been in better operational shape and generates significant cashflow,” said Virgin Media CEO Neil Berkett. “We believe that these amendments are in the best interest of customers, stockholders, lenders, employees and other stakeholders in light of the current status of the credit markets.”
NASDAQ-quoted Virgin Media closed the day on 7.21, up 39.73% on Friday’s close.
