Telewest's Singer tries a new tune

CABLE TV firm Telewest plans to follow in NTL's footsteps with a debt-for-equity swap, having failed to drum up bid interest for its Flextech programming arm.

Chief executive Adam Singer hopes to seek board approval for the restructuring over the next few weeks. Singer, who said he was 'more likely to run off with Cindy Crawford' than be forced into a debt swap, will have to eat his words.

Debt agencies have slashed their ratings for the cable TV firm and its shares have sunk from a 563p peak to just 6p. Flextech, run by Jane Lighting, has been openly touted for sale, but has found no buyers.

Telewest, which has £5.1bn debts, will swap up to £3.5bn of its bond debt for equity. But it first needs to secure approval from major shareholders Liberty Media and Microsoft.

Sources say shareholders will be guaranteed at least 10% of the group's equity after the restructuring. John Malone's Liberty Media is eventually likely to take full control.