NTL in cash crisis

NTL (NYSE:NLI) said on Wednesday that it may run out of money before it completes its planned restructuring.

This means that there is a possibility that it may not be able to continue its operations. Its auditors Ernst & Young are said to have queried whether it can survive.

The company reported its annual and Q4 results which showed its net loss had increased to £11.4bn (€18bn) from £2.29bn (€3.2bn) in 2000.

It had a total of £8bn (€13bn) in exceptional charges. While the company says it now has 180,000 customers in the UK, it has a high level of debt relative to its cash flow and its assets are declining in value. Barclay Knapp NTL president and CEO said that refinancing talks were making rapid progress.

NTL Ireland reported improved results for the fourth quarter, showing a small rise in revenue, up to €16.5m - from €14m in the fourth quarter of 2000.

Earnings for the quarter were up by 25% to €42.5m compared to the year ago quarter.

NTL Ireland now has 15,000 digital TV customers.