NTL Files World’s Largest Debt Default

NTL Inc. filed for Chapter 11 bankruptcy protection, citing $23.38 billion in debt, as part of a recovery plan that will hand bondholders a controlling stake in Britain’s largest cable-television company.

The New York-based company’s debt default is the largest in history, eclipsing Enron Corp.’s $9.9-billion nonpayment last year. NTL, which never made a profit in its nine-year history, filed papers in U.S. Bankruptcy Court in Manhattan, listing $16.83 billion in assets.

NTL Chief Executive Barclay Knapp amassed the debt during an $18-billion spending spree at the height of the telecommunications boom. NTL ran into trouble when sales of TV, phone and Internet services lagged expectations, leaving it unable to meet payments on its debt.