2 Way Traffic N.V Share Discussion Threads

[maut too] 16/7/2004 11:46

from light reading


JULY 16, 2004
PREVIOUS NEWS WIRE FEED

Telewest Completes Restructuring

--------------------------------------------------------------------------------

LONDON -- Telewest Communications plc ("Telewest") today announces that its financial restructuring has become effective. As a result, all outstanding notes and debentures of Telewest and its Jersey-based finance subsidiary have been cancelled, reducing the total outstanding indebtedness of the business by approximately GBP 3.8 billion, or more than 65%, to approximately GBP 2.0 billion. As part of the financial restructuring, Telewest transferred substantially all of its assets and liabilities to a subsidiary of Telewest Global, Inc. ("Telewest Global"), a holding company incorporated in the state of Delaware and formed for the purpose of holding the businesses that have historically comprised Telewest.

Trading in Telewest Global's common stock on the Nasdaq National Market will commence on 19 July 2004 under the symbol "TLWT". As part of the financial restructuring, 241,325,000 shares, or 98.5%, of Telewest Global's common stock will be distributed to the holders of Telewest's and its Jersey-based finance subsidiary's notes and debentures and certain other scheme creditors, and 3,675,000 shares, or 1.5%, of Telewest Global's common stock will be distributed to Telewest's existing shareholders. Details of the distribution of these shares will be announced tomorrow, 16 July 2004 after 5:00 p.m. (London) when Telewest's and its finance subsidiary's schemes of arrangement are closed to claims for which no notice has been received.

Telewest today also successfully completed the amendment of its senior secured credit facility. The amended facility provides for fully committed facilities of GBP 2.03 billion.

Cob Stenham, Chairman of Telewest, commented: "Completion of our financial restructuring ends a long and complex process for Telewest and allows us to focus our full resources on strengthening our position as a leading broadband communications and media group in the United Kingdom."

Telewest Global's board of directors will include seven directors not historically associated with the Telewest business: Barry R. Elson (Acting Chief Executive Officer), William Connors, John H. Duerden, Marnie S. Gordon, Donald S. La Vigne, Michael McGuiness and Steven R. Skinner. Cob Stenham, Chairman of the Board of Telewest, will serve as Chairman of Telewest Global.

"This is a dynamic and experienced group of directors. Their expertise will be extremely valuable to the Telewest business, and I am looking forward to working with them", said Stenham.

Telewest Communications Networks plc

[maut too] 16/7/2004 11:44

I thought you didn't own any shares djwr and claimed the other day to be a newcomer ... you seem a tad worried and interested in what others are doing - any special reason for trying to save us all

your calculations came soon after I posted the details on the share numbers etc

I think a 20% initial gain will do fine and we will soon see what the market thinks when there is a market - on monday ... must admit I am always wary of people endlessly asking questions because they claim to know little but then seem to know lots - despite the fact they have no holding

lol

[djwr100] 16/7/2004 11:39

I can't see any evidence for NTL increasing by 10x.

$17 to $65 approx from the graph posted before.

Remember that NTL started very low, to get to where it is now. [Maybe it was once $6.50?]

If Telewest starts at the price we think, say $13.75, can anyone imagine it ever going anywhere near $137.50, and what that will mean to the value of the company?

Or to put it another way, if Telewest starts at a fraction of $13.75, then there is room for an increase.

If you were a large holder of shares, what would you say? These are going to go down, or they will go up by 10x? I think that we should all be very careful of any enthusiastic comment, especially from those unable to justify it.

If you can make any sense of my valuation method, copy it to a spread sheet to check it, and then alter the share price to what you would like or expect, to see the other numbers change. If you can't understand it, ask. I might not have written it clearly enough.

But on a positive side, one source of error could be the valuation of NTL. I have assumed that it is right as it stands now. If the company, NTL, is currently undervalued, then so will be Telewest. So if NTL goes up by x10, so could Telewest.

I would really like to see some of the more experienced give a justification for their view, and produce some work that could either challenge me or confirm my calculation.

By the way, £0.0075 does not equate to $13.70, but $11.22.

£0.00919 equates to $13.75, the listed price before trading starts.

[maut too] 16/7/2004 10:45

the number of shares traded on the last day was just a tiny fraction of previous days and as it happens I picked up a significant % as a result

[maut too] 16/7/2004 10:42

you miss the point - the closing 0.75p never existed on sets and was just transported over and converted - it has no real meaning - you try and buy or sell at that price

[audereestfacere] 16/7/2004 10:29

False or not, the share still had a value and, after conversion, it was uncannily close to what appears to be Global's listing price.

[maut too] 16/7/2004 10:16

It was a false situation audereestfacere with forced sellers and relatively few buyers - look at the timing of most buys and look at the intraday trading charts over the last 15 days ... I used sets to buy at the right times off the sets market and was able to buy most shares at 0.75p on the last day despite sets never showing that price.

[audereestfacere] 16/7/2004 10:10

djwr 100 - Thank you for the in-depth analysis, I'll have a good look later.

maut too - I think the UK price in the run up to delisting was of significance, particularly as it was a SETS share - moved by 'AT'.

The ATs held the price in .75 /.90 range for sometime and there were some major buys, which indicated that the professionals were predicting an opening price for Global at between £6 and £7.25. I bought back in on that assumption,it could have been a false premiss, but appears to have been correct.

[day_dreamer] 16/7/2004 09:52

Dont worry, no matter what happens mauty will make a profit.

Has he still not posted how he came to a 1.5p price prediction ?

Naught naught Keith !!!

I will always expose you :-))

Gravy

[maut too] 16/7/2004 09:50

interesting - i phoned them pre market and they may have sorted it already - I did explain to them it was confusing and some might trade the cash shown

[audereestfacere] 16/7/2004 09:47

maut too - I have an ISA with comdirect and TWT is shown as normal, no of shares with a bid price of 0.69p and the usual extension.

Agreed it's a good bet - that's why I bought back in at 0.79 waiting for conversion.

[maut too] 16/7/2004 09:37

i think it's a good bet at that price esp over the longer term

[crazi] 16/7/2004 09:33

I'm still holding....bottom drawer long term investment at an aveage of 0.8p

I also picked up an extra half mil for the kids for long term to.

Good Luck

Crazi

[maut too] 16/7/2004 08:23

interesting situation this morning with comdirect - they are involved in the corporate action in terms of converting twt shares but as part of the process have taken the shares out of the isa and substituted the money - this will be reversed at some later stage and the new stock shown ... I think it should have been done in the background as it is very confusing

[maut too] 16/7/2004 07:35

this is interesting





'Matching Gains

After exchanging his bonds for Telewest Global shares, RAB Capital's Gargour said he expects gains in the stock to at least match those of NTL shares, which have risen more than 10-fold in almost two years.

NTL had Europe's largest bond default in 2002 and exited Chapter 11 bankruptcy in the U.S. last year after swapping debt for new equity.

NTL's U.S.-traded shares started trading on the Nasdaq Stock Market at $5.41 in September 2002, reaching a high of $73.67 in January. They now trade at about $55.5. '

[maut too] 16/7/2004 07:32

Hollywood Reporter


July 16, 2004

Telewest restructure complete

LONDON -- U.K. cable company Telewest has completed its drawn-out financial restructuring, the company announced Thursday, as it removed its shares form trading on the London stock exchange. The company's assets and liabilities have been transferred to a U.S. holding company called Telewest Global Inc., which is set to start trading on the NASDAQ on Monday. The restructuring reduced the company's debt to £2 billion ($3.7 billion) from £5.8 billion ($10.7 billion), for which the bondholders were given 98.5% of its shares. The company's retail shareholders were left with 1.5% of the new shares. Cob Stenham, chairman of Telewest and the new chairman of Telewest Global said: "Completion of our financial restructuring ends a long and complex process for Telewest and allows us to focus our full resources on strengthening our position as a leading broadband communications and media group in the United Kingdom." (Kate Bulkley)

[maut too] 16/7/2004 07:12

so everyone is right but some of us have a few shares and some of us don't ... personally I am happy and expect to show a profit from day one but will have to wait until monday afternoon to confirm :-))

The closing price of the LSE shares does not have a direct relationship to the opening price of the new shares for ots of reasons and I would be wary of making an investment based on that thinking. The main reason why people like myself were buying our entry via lse shares was the fact we considered them grossly undervalued. I paid 0.84p for some of mine and still considered them cheap. This was the whole point o starting the thread at the time

[djwr100] 16/7/2004 02:42

audereestfacere,

The value of NTL, or the market cap is 4844941200 USD on 15 July 04.

That is 87060938 shares at 55.65 USD each.




[Didn't NTL open at $17 and eventually reach $70 +, before retreating to its current $57]


There is a chart here, select 2 yrs



Assume that NTL is trading now at a reasonable value. The $17 or so was very low, and the $70 high. That is not to say that the $70 cannot be reached again, or even the $17. But I think that the point here is that Telewest has a reference in NTLI, and is unlikely to jump by a factor of 70/17, or even 55/17. Telewest will start off about right. In fact the 13.75 USD share price looks about right.

This is how I see things...

The new telewest shares in issue [given to the old shareholders] are 3675000, and are 1.5% of the company, leaving 241325000 for the others, giving a total number of shares of 245000000 to be issued.

Take the 3675000 shares and multiply by 804.4, to give the UK shares in issue before the d4e, ie 2956170000.

At a UK closing price of say £0.0075, the value is 2956170000 * 0.0075 which is £22171275.

But this represents 1.5% of the new company, and if divided by the new shares, 367500, gives a sterling new share price of £6.03, or at a USD rate 1.86, a share price of 11.22USD.

The market cap of the whole new company is £[100*22171275/1.5] and in USD multiply by 1.86 giving 2749238100 USD.

Now compare this 2749238100 USD market cap of Telewest with that of NTL of 4844941200 USD. It is 57%.

The above, £22171275, £6.03, $11.22, $2749238100 and 57% are all based on the UK closing price of £0.0075.

Previously, in post 50, I suggested that the market cap for Telewest should be about 2/3 of NTL at about 3.2b. Changing the UK share price in the calculation to £0.00916 gives a US share price of $13.70, [£7.37], and a market cap of $3.35billion, or 69% of NTL. So yesterday's indicated US price is not far wrong from what I calculated. ;-)

Note that an old UK share price of 1.32 pence, or $19.75 now, would make new Telewest have the same market cap as NTL.

[maut too] 15/7/2004 21:46

Official List
14 July 2004

NOTICE OF CANCELLATION OF AN OFFICIAL LISTING ON A STOCK EXCHANGE



(369)



15/07/2004 08:00 AM



Following notification from the Financial Services Authority ('the FSA') that it
cancels the securities* set out below from the Official List, the London Stock
Exchange ('the LSE') cancels those securities from trading. The following
securities are, therefore, cancelled from their official listing on the LSE with
effect from the time and date of this notice.



The listing for the following securities have been cancelled from 15/07/2004 08:
00 AM at the request of the company.



TELEWEST COMMUNICATIONS PLC
11 1/4% Senior Notes due 2008 (0-448-279)(US87956PAD78)

fully paid

(Represented by notes to bearer)

(Regulation S)
11 1/4% Senior Discount Debentures due 2008 (0-447-726)(US87956PAC95)

fully paid (Represented by notes to bearer)

(Rule 144A)
11 1/4% Senior Notes due 01/11/2008 (0-685-678)(QQ0006856785)

fully paid

(Series B)
11% Senior Discount Debentures due 2007 (0-877-196)(US87956RAB78)

fully paid

(Registered)
11% Senior Discount Debentures Due 2007 (0-877-185)(US87956RAB78)

fully paid
11.375% Senior Discount Notes due 01/02/2010 (3-003-073)(US87956PAN50)

fully paid

(Represented by notes to bearer of USD1,000 each)

(Series B)
5 1/4% Senior Convertible Notes due 2007 (0-532-677)(XS0094678827)

fully paid

(Registered)

(Rule 144A)
5 1/4% Senior Convertible Notes due 2007 (0-532-655)(XS0094678587)

fully paid

(Registered)

(Regulation S)
9 1/4% Senior Discount Notes due 2009 (0-325-316)(QQ0003253168)

fully paid

(Represented by notes to bearer of USD1,000 each)

(Series B)
9 1/4% Senior Discount Notes due 2009 (0-668-312)(US87956PAL94)

fully paid

(Represented by notes to bearer of USD1,000
each)

(Regulation S)
9 1/4% Senior Discount Notes due 2009 (0-668-301)(US87956PAJ49)

fully paid

(Represented by notes to bearer of USD1,000
each)

(Rule 144A)
9 5/8% Senior Debentures due 2006 (0-877-174)(US87956RAA95)

fully paid

(Registered)
9 5/8% Senior Debentures Due 2006 (0-877-163)(US87956RAA95)

fully paid
9 7/8% Senior Discount Notes due 2009 (0-323-804)(XS0109484799)

fully paid

(Represented by notes to bearer of GBP1,000 each)

(Series B)
9 7/8% Senior Discount Notes due 2009 (0-668-271)(XS0096392419)

fully paid

(Represented by notes to bearer of GBP1,000
each)

(Regulation S)
9 7/8% Senior Discount Notes due 2009 (0-668-259)(US87956PAF27)

fully paid

(Represented by notes to bearer of GBP1,000
each)

(Rule 144A)
9.875% Senior Notes due 01/02/2010 (3-003-114)(US87956PAQ81)

fully paid

(Represented by notes to bearer of USD1,000 each)

(Series B)

9.875% Senior Notes due 01/02/2010 (0-137-135)(USG8742CAF98)

fully paid

(Represented by notes to bearer of USD1,000 each)

(Regulation S)
9.875% Senior Notes due 01/02/2010 fully paid (0-137-124)(US87956PAP09)

(Rule 144A)
9.875% Senior Notes due 01/02/2010 (3-003-095)(XS0117774900)

fully paid

(Represented by notes to bearer of GBP1,000 each)

(Series B)
American Depositary Receipts (200:1) (3-207-176)(US87956P2048)

fully paid


Ordinary Shares of 10p each (0-654-452)(GB0006544521)

fully paid






If you have any queries relating to the above, please contact Issuer
Implementation at the London Stock Exchange on 020 7797 3545.



* = The FSA cancels securities to the Official List which are represented by the
class of security disclosed in this Notice.



In making the above statement, the Exchange is relying on the accuracy of the
notification from the FSA and is not under any circumstances liable for the
accuracy of that notification.


This information is provided by RNS
The company news service from the London Stock Exchange

[maut too] 15/7/2004 21:45

AFX UK Focus) 2004-07-15 17:29 GMT:
Telewest Communications completes restructuring


LONDON (AFX) - Telewest Communications PLC said it has completed its financial restructuring which had been subject to a number of conditions.

All outstanding notes and debentures of Telewest and its Jersey-based finance subsidiary have been cancelled, reducing the total outstanding indebtedness of the business by approximately 3.8 bln stg, or more than 65 pct, to approximately 2.0 bln stg.

Cob Stenham, chairman of Telewest, commented: "Completion of our financial restructuring ends a long and complex process for Telewest and allows us to focus our full resources on strengthening our position as a leading broadband communications and media group in the United Kingdom."

[e-mail] slm/

[pparkin405] 15/7/2004 21:38

15-Jul-2004

Other Events


ITEM 5. OTHER EVENTS
On July 15, 2004, Telewest Communications plc ("Telewest") issued apress release announcing that its financial restructuring has becomeeffective. As a result, all outstanding notes and debentures of Telewestand its Jersey-based finance subsidiary have been cancelled, reducing thetotal outstanding indebtedness of the business by approximately (pound)3.8billion, or more than 65%, to approximately (pound)2.0 billion. A copy ofthat press release is attached hereto as Exhibit 99.1.

sorry couldnt get press release