Posted: Thurs., Jan. 2, 2003, 4:28pm PT

Morgan Stanley sues NTL over fees

Complexity of chaprt 11 restructuring has stalled cabler

LONDON -- Cash-strapped U.K. cable company NTL is being sued by Morgan Stanley, one of its banking advisers, for more than £7 million ($9.8 million) in unpaid fees for work dating back to 1999.

Morgan Stanley, one of NTL's longest-standing advisers, is involved in the cable outfit's $10.6 billion rescue from Chapter 11 bankruptcy protection.

NTL was forced to seek bankruptcy protection after admitting it would soon be unable to pay debts it had incurred while building its cable network across Britain. It had been due to emerge from Chapter 11 by the end of November but the complexity of the restructuring, which involves around 60 European banks, has prolonged proceedings.

Details of the litigation emerged from a filing made by NTL at Companies House in London.

The filing also reveals that media veteran and former Granada Media CEO Duncan Lewis, who was due to become a director of the new NTL, has already vacated his position.

NTL is widely expected to attempt a merger with rival Telewest once both have resolved their financial difficulties.


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