NTL and Telewest near refinancing deals

Ailing cable TV companies NTL and Telewest yesterday both took steps towards completing complex financial restructurings.

Telewest is understood to be close to a deal with eight banks who are acting on behalf of the 26 financial institutions which loaned the company £2.25bn in March 2001.

The deal would give Telewest, which earlier this year announced plans to hand 97% of its shares to bondholders owed £3.5bn, a new £2bn facility. Last night, Telewest refused to comment on the talks, but sources said the company is hoping to update the market on the progress of its restructuring before Christmas.

Rival cable firm NTL yesterday extended a $630m (£400m) loan which was due to run out this month and is being used to cover the company's day-to-day running as it completes its restructuring.

NTL had hoped to emerge from chapter 11 bankruptcy protection this month but yesterday admitted that the timetable had slipped. Sources said the firm has been forced to rethink the amount of cash it will need to operate once it emerges from bankruptcy protection. Yesterday NTL said it hoped to complete its refinancing "in the very near future".

Yesterday it emerged that Steve Hare, the former finance head of Marconi, which is also close to signing off on a refinancing, will receive all his £560,000 bonus for organising the deal even though he is leaving the company before its completion.