UK cable operator Telewest Communications Plc has for the first time acknowledged it could face a funding gap. The London, UK-based company had been telling a disbelieving world that it was fully-funded despite a widespread belief that it would join other cable operators in a debt-for-equity restructuring.
Chief executive Adam Singer told the company's annual meeting yesterday that it has a requirement for 200m pounds ($292m) vendor financing and needs to fill the outstanding proportion 105m pounds ($153.3m) of the international tranche of its bank facility.
Moreover, the ability to draw on its bank facility is dependent on the company continuing to deliver strong operational performance. "If we are unable to meet any of these requirements then we will potentially face a funding gap," he said. Singer insisted that Telewest had continued to perform strongly, and that its number of broadband subscribers is now 169,000, up from 148,000 on May 2.