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To bondholders, that signaled banks might have less profit from which to pay interest.
But it is the votes of the bondholders that may end up mattering more.
The company skipped a $53.1 million biannual payment to bondholders that was due Dec. 1.
NTL earlier this week reached an agreement with bondholders that would erase $10.6 billion in debt in exchange for equity.
Around £100m will now be repaid to the secured creditors or bondholders that had lent £430m to the firm.
In effect, the committee has to decide whether this constitutes the type of "subordination" for non-E.C.B. bondholders that would prompt a payout on Greek credit-default swaps.
Similar(8)
Pimco, the giant money manager in California, is one bondholder that is unconvinced that Cerberus would actually push GMAC into bankruptcy, according to people close to the matter.
The bondholders preferred that the money be used instead to finance the company's cable operations.
Given the cosiness between Italian politicians and banks, bondholders fret that local outfits will get preferential treatment in the restructuring.
The union is being treated better than the bondholders, and that is said to violate decades of bankruptcy law traditions.
If bondholders had that right, restructuring cases would not need the exit consent maneuver to force holdouts into submission.
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CEO of Professional Science Editing for Scientists @ prosciediting.com