UPC rejigs to clear debt mountain

AILING cable group United Pan-Europe Communications' liquidity crunch prevented it from meeting a e133m (£81m) payment due on part of its debt mountain.

The embattled Dutch cable company said it has until 3 March to make the payment to avoid a technical default, but was in talks with the bankers to seek a waiver.

It unveiled a restructuring plan that will clear e7.5bn of debt, but dilute its existing independent shareholders to about a tenth of their holdings.

Its Euronext-listed shares, which have fallen 98% in the past 12 months, were suspended at 39 euro-cents today as it outlined a plan to convert e6bn of debt and e1.5bn in preference shares into new equity.

UPC's majority shareholder UnitedGlobal Com will convert e2.6bn of its debt and e300m-worth of preference shares. At the suspension price UPC is worth less than e200m.