NTL bondholders give Knapp second chance

Barclay Knapp, the NTL chief executive who presided over the company's slide into a £12 billion debt and Chapter 11 insolvency in the US, has been allowed to continue his reign at the troubled cable company by bondholders.
The bondholders committee, made up of NTL creditors who gained control of the company after a Knapp initiated a debt-for-equity swap, endorsed Mr Knapp's position at the weekend.
Mr Knapp seems to have impressed the bondholders' group with his "determination" and Brad Eric Scheler – legal representative to the creditors' committee – said the NTL founder was the "right man" for the job.
"Barclay's determination to ensure that NTL continues to prosper and grow is evident in everything he does and we are confident that he is the right man to lead the company going forward," he said.
However, investors will not take well to the decision as they have seen the value of their shares – which traded at a $136-high two years ago – wiped out during the restructuring process.
Mr Knapp said: "We at NTL share a passion for the company and our industry, and appreciate the opportunity to lead both companies going forward."
It is likely that NTL and their similarly troubled UK rival Telewest will merge to ensure survival. Mr Knapp is known to advocate market "consolidation" and Cob Stenham, Telewest's chairman, has said that a merger between the two companies will happen "sooner or later".
NTL, www.ntl.com
(GMcG)