This cable guy helped Telewest into penury. Why is he still there?
Anyone who has seen the film The Cable Guy knows it is about a cable television installer who insinuates himself into the life of the movie’s hero and becomes a terrible liability. It was released in 1996 and, with hindsight, should have been a well-timed warning to investors in the real cable TV installer, Telewest, which had been floated on the stock exchange the previous year. Since then, the shares briefly soared to nearly 500p before plummeting to their current 1.16p – almost one-hundredth of the 1995 offer price. Over the same period, the company’s borrowings have grown at an unbelievable rate to £5.3 billion, including £3.45bn of bond debt. The creditors have as much reason to be fearful as the shareholders, for Telewest defaulted on a £69 million interest payment at the beginning of this month and says it will continue to withhold payments until a refinancing can be completed. This refinancing will involve swapping the bond debt for 97 per cent of the equity, leaving the shareh
