The economic signs of strain are hitting many of ISP companies that had like the rest of us not banked on there being a credit crunch.
http://www.theregister.co.uk/2008/10/14/vm_debts/Virgin Media has persuaded banks to hold off calling in billions of pounds of debt from 1990s cable rollouts until 2012.
Traders in New York, where the firm is listed, liked the plan and sent its stock up 25 per cent yesterday. Virgin Media beancounters still require permission to restructure the £4.3bn of loans from some creditors, but the ten biggest are already on board
Rumours have been flying that Virgin Media would have to sell major parts of its business in order to meet its debt obligations. The proposed new repayment schedule would significantly ease such pressure.
I,m not sure why they are rescheduling this debt repayment as in 99% of cases most of a companys value is perceived on paper only, but I suppose such modern ways of doing business are over sensitive to currency fluctuations, whatever happened to hard cash and a stiff back bone ?
