A BELEAGUERED cable operator has reassured its customers in the North-East that its services will not be hit by the company's plight.

NTL sought to allay fears as it was reported it had withheld interest payments worth nearly £70m yesterday, after gaining crucial support from the owners of the debt.

NTL, Britain's biggest cable company, said it was able to raise the cash, but had been told by a group of bond-holders not to make the payments while attempts to restructure the debt take place.

The move came on the same day that the US-based company lost its prestigious place on the New York Stock Exchange.

It has been relegated to the Over the Counter Bulletin Board because its share price rendered the company too small for a main listing.

NTL, which has operational headquarters in Hook, Hampshire, appointed advisors in January to help restructure debts estimated at about £12bn.

Borrowings have spiralled after a rapid expansion in which NTL picked up franchises and customers, plus cable networks and infrastructure.

Last week, it posted a massive £11bn loss because of a string of one-off charges reflecting the lower value of its investments.

The company now has a 30-day "grace period" to decide if it will make the interest payments.

The result of the debt restructuring work is not expected until the autumn.

However, NTL said the move not to make the interest payments would not affect its business operations in the UK, Ireland and continental Europe.

A spokesman said last night: "We have many customers in the North-East. We want to reassure them that it is business as usual, and it shall remain so. Services will be completely unaffected."

The company has more than three million residential customers in the UK.