Virgin Media gets debt delay

November 4, 2008

A while ago Virgin Media went to its lenders to ask if it could delay the payment of its debts due to the current financial crisis.

The cable firm is estimated to owe around £4.3 billion to various financial institutions with the Deutsche Bank being the largest.

It is believed that Virgin Media has managed to delay its repayments of these debts until 2012. This gives it a further three years to sort the finances out, when it will recommence with a payment plan.

If it had not secured this deal then it would have had to refinance as early as next year.

There is no doubt that in three years time, the debt burden of Virgin Media is going to be a lot higher, but the company itself is likely to be in a stronger position to refinance, although it will probably have to look at selling some of the company’s assets or look at other alternatives.

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