UPC Lenders Waive Default on EU4 Billion Credit (Update1)
By Victorina de Boer and Celeste Perri


Amsterdam, March 4 (Bloomberg) -- United Pan-Europe Communications NV, Europe's No. 2 cable-television provider, said lenders agreed to wait until June 3 before calling a 4 billion-euro credit ($3.5 billion ) into default.

The company, controlled by John Malone's Liberty Media Corp., didn't pay 113 million euros of interest due Feb. 1 on three bonds. The loan would be in default if lenders didn't agree to the waiver, UPC spokeswoman Carina Hamaker said.

UPC's market value has plummeted to 111 million euros from 37 billion euros two years ago after the company failed to convince enough of its 7.15 million subscribers to use more profitable telephone and Internet services. The company last month proposed swapping 7.5 billion euros of debt for equity.

J.P. Morgan Chase & Co., Toronto-Dominion Bank, Bank of America Corp., Royal Bank of Scotland Group Plc, Canadian Imperial Bank of Commerce and arranged the 4 billion euro-credit in 2000.

UPC shares, which were dropped from the AEX Index of leading Dutch stocks last month, fell 2 euro cents, or 7.4 percent, to 25 cents.


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