Under the debt-for-equity swap, shareholders are left with just 1.5% of Telewest.

The swap has secured the crucial agreement of bondholders, despite reports that it might have to be seriously amended.

But it must now be approved by 26 banks, which are together owed some �2bn.

Also in question is the firm's base of operations, which some bondholders reportedly hope could be moved to New York, where the firm's shares were listed.

The debt deal, although still provisional, effectively spares Telewest from Chapter 11 bankruptcy.

This comes as a relief to bondholders, whose control would have been eroded under the arrangement.