UPC put the huge loss down to a one-time, non-cash E1.5 billion impairment charge relating to a revaluation of UPC’s intangible fixed assets, a E0.2 billion restructuring charge, and E1.1 billion in non-cash depreciation and amortization charges.
To add to its woes, UPC may be forced to sell its 22% stake in UPC Germany due to its subsidiary’s other owners defaulting on bonds. Despite these problems UPC has denied it is in difficulty and claims that it is on track and in constructive discussions with UPC stakeholders regarding the recapitalisation of its balance sheet.
