NTL seeks help to escape £12bn hole

NTL is to seek new investors to help it refinance its £12 billion debt. Last week, the troubled cable TV giant appointed investment bank CSFB to advise on a debt-for-equity swap with bondholders.

City sources say a deal could lead to a change in management.

NTL is also looking at other plans to cut costs and debt. Sources said there was a possibility of opening the network to competitors.

Potential investors include media giants AOL-TimeWarner, US-based Liberty Media and Microsoft. But other sources rejected an AOL deal as 'extremely wishful thinking - it does not do wires and men in vans'. They also said Microsoft has virtually stopped investing in infrastructure.

Liberty Media is still on the acquisition trail and is understood to be negotiating a stake in Germany's Kirch pay-TV network.

WestLB, the German bank that bid for BT's network and has been linked to negotiations to buy NTL's transmission mast business, is also weighing up a bid for the NTL network, according to City sources. WestLB declined to comment.

Meanwhile, NTL's rivals have held talks with the telecoms watchdog over how to handle the fallout if the firm collapses.

Oftel said it was 'monitoring the situation and keeping in close touch with all operators'.

Next month, NTL must meet interest payments of £28 million. A collapse would leave 3.2 million customers without a phone.