NTL the cable firm suffering under $17 billion in debt, said today it was running out of time and money as it talked to lenders about a refinancing and to strategic investors about a possible rescue.
The company declined to name potential investors, but industry sources say US cable group Liberty Media, owner of a large part of Britain's other cable group, Telewest, has been talking to NTL about making a possible investment.
Analysts say such a deal would be a prelude to a long-anticipated merger between the two companies as they attempt to compete with pay TV market leader BSkyB.
NTL has said it does not expect to complete its debt restructuring until after June at the earliest, and it was talking with potential investors about a cash infusion to keep its operations going.
NTL reported a charge of £8 billion sterling largely from a writedown of goodwill and assets to account for a sharp fall in telecoms valuations, along with a better-than-expected rise in underlying 2001 earnings.
The value of NTL shares, already down well over 99 per cent in the last year, is expected by analysts to be diluted further by a debt-for-equity swap as part of the refinancing.