Colt receives bondholder begging letter

Colt Telecom's bondholders have written to the struggling telco begging it to halt its recent spate of bond buy-backs and try and save some cash.

The letter, from London law firm Linklaters, on behalf of a group of bondholders, accuses Colt of showing preferential treatment to some creditors by buying back certain bonds.

The bondholders claim the £147m cash spent on buy-backs since last August only serves to further weaken the telco's financial position. In order to protect their investment, they are asking to be involved in the company's balance sheet.