Telewest's protection from creditors in U.S. courts extended

By Jeff Pines

Washington, May 28 - Telewest Communications plc and Telewest Finance Ltd., obtained an extension to their protection from creditors in U.S. courts, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

A hearing on extending the protection for the London-based broadband provider was held Thursday.

U.S. bankruptcy law allows foreign companies to seek protection from creditors in U.S. courts while they reorganize under their home countries' laws.

The order will remain in effect unless the creditors reject the reorganization plan, a judgment that the plan is not sanctioned by the British courts or until 45 days after all judgments from the British courts are sanctioned.

No objections were filed to the request for extending the protection.

The company's plan calls Telewest to offer 98.5% of the common stock in a new holding company in exchange for the cancellation of all of the notes the company and Telewest Finance Ltd. sold and for certain other claims. Eligible shareholders would get 1.5% of the new shares.

A vote on the reorganization plans will be held June 1 in London.

Telewest's case number is 04-12916, and Telewest Finance's case number is 04-12917.

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