Viking Freight, Inc.
On January 10, 2003, NTL, Inc., the largest operator of cable assets in Europe, consummated its reorganization plan. As a result, old NTL was split into two separate and independent public entities – new NTL, Inc. (the current owner of old NTL’s United Kingdom and Irish cable assets) and NTL Europe, Inc. (the entity renamed as PTV, Inc.). Upon consummation, PTV held old NTL’s troubled cable assets in continental Europe (including Cablecom GmbH, Switzerland’s largest cable company), as well as non-cable businesses in the United Kingdom.
In September 2002, the Unsecured Creditors Committee of old NTL retained Quest Turnaround Advisors to develop a plan to manage the business upon PTV’s emergence as an independent entity. Quest provided the services of Jeffrey Brodsky, who became CEO, and Robert Schmitz, who became COO.
The Quest team developed business and financial plans for each of the company’s assets and made quick decisions about which assets were worth holding, revitalizing, closing, or selling. They hired new CEO’s of two new media businesses, Premium TV, Ltd. and Two Way TV, Ltd.and guided them through operating and strategic changes that saved the businesses. They renegotiated $86 million of parent company guarantees and a number of other non-viable commercial contracts.
The strategy was to restructure to preserve equity value and distribute the maximum amount of cash possible to preferred stockholders, The Quest team distributed $23.50 per share after trading at $2.50 upon exit from Chapter 11.
Specific restructuring results include:
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