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Originally Posted by nidave
Just as a mental exercise - If ntl went belly up what do you think would happen?
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ntl (in the UK) won't go belly up.
Their gross profit is in the region of 60% to 70% of revenue.
Their problem is the amount of debt this profit has to service.
The debt arose partly in building the network, but mainly in taking over over companies.
Last time they went bankrupt the debt was reduced, but it is still very substantial for the company.
However, whilst their gross margins are so high, the business will continue.
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Originally Posted by Russ D
I've been passed this from an annonymous source....
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If what you say is true, two things come to mind:
Firstly, if it is a short term accounting issue, then presumably it will be reversed in the next accounting period; but
secondly, as it appears that COBI is being run at arms length from ntlhome, should there not be a minimum service level agreement in place? If COBI can decide exactly what level of service they provide, then why do they provide any service at all?
It seems to me that there is more to this than the explanation provided.