Dutch cabler United Pan European Communications N.V. (UPC) said it has
reached an agreement to substantially reduce its 9.3 billion Euro ($8 billion)
In a press release, UPC said it would convert 6 billion Euros ($5.2 billion)
in debt and 1.5 billion Euros ($1.3 billion) in convertible preferred stock into
UPC signed a memorandum of understanding with its parent, UnitedGlobalCom
Inc. -- which is 72 percent-owned by Liberty Media Corp. -- under which UGC
would swap its 2.6 billion Euros ($2.2 billion) in UPC debt for new shares.
UPC and UGC said they would negotiate with UPC's other bondholders.
As a result, UPC said it would not make a 113 million Euro ($97.3 million)
bond-interest payment due Feb. 1.