维珍媒体O2大额债权人就CMA阻挠Nexfibre收购Netomnia寻求律师意见，10亿英镑现金来源落空、债券已深陷困境区

Some of Virgin Media O2’s biggest creditors are getting legal advice from Milbank LLPafter a UK regulator flagged concerns over a deal that would have provided the company with much-needed cash, according to people familiar with the matter.

BlackRock Inc., Pacific Investment Management Co. and Sona Asset Management have tapped the law firm to advise on next steps after the UK’s Competition and Markets Authority said competition could decline if Nexfibre Networks Ltd. — a Virgin Media joint venture — went through with its plan to acquire rival Netomnia Ltd., the people familiar said, asking not to be named discussing private information.

Virgin Media’s bonds have plunged deep into distressed territory since the provisional decision raised doubts that the acquisition would close. It would have pulled in about £1 billion ($1.3 billion) of cash from the deal.

The scope of Milbank’s mandate is limited to the situation involving the CMA, the people familiar said. The regulator must make a final decision on the deal by Dec. 15. In another blow to Virgin Media, BT Group Plc recently acquired TalkTalk, a move that threatens to expand the customer base of one of its largest competitors.

Spokespeople for Virgin Media, Sona, BlackRock and Pimco declined to comment. A representative for Milbank didn’t immediately reply to a request for comment.

As prices fell last week, hundreds of millions of pounds worth of company’s debt changed hands. Investors who had bought at par sold to buyers in the secondary market, according to separate people familiar with the matter, also speaking on the condition of anonymity.

Some scooped up the bonds on the belief that the prices have fallen too far. Among them, was Sona, which dialed up its exposure with a focus on the secured debt, despite taking a hit on its existing position, said the people.

Sona has owned Virgin Media high-yield bonds and vendor financing notes since at least early this year, and was pitching its conviction on the firm’s credit as recently as this summer, they added.

In meetings with investors last week, management of Liberty Global Ltd. — which co-owns Virgin Media with Telefonica SA — reiterated that its focus is on reducing Virgin Media’s £22 billion debt load. It also emphasized the need to preserve the company’s access to capital markets to fund its business.

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