Virgin Media attempts to delay debt repayments

The current financial situation is hitting everyone hard, including it would seem Virgin Media.

The cable company has apparently been in touch with its lenders with regards to rescheduling its repayments by one or two years.

The company currently has around £4.4 billion in debts.

The repayment schedule was set so that it would have to pay £4 million in 2009, a massive £1.1 billion in 2010 and £996 million in 2011, but with the current climate the company is seeking to put these payments back a couple of years.

On the face of it, the lenders have little choice in the matter, as they either receive the payments later in 2012 or not at all, if Virgin Media collapses.

The lenders have agreed to this arrangement and in response to this news shares in Virgin Media rose by twenty five per cent.

Story link: Virgin Media attempts to delay debt repayments