Virgin Media 2010 Annual Report Download - page 36

subscriber or reduced financing available to the mobile communications industry. Further research and studies
are ongoing, and we cannot be sure that additional studies will not demonstrate a link between radio frequency
emissions and health concerns.
Risks Relating to Our Financial Indebtedness and Structure
We have substantial indebtedness which may have an adverse effect on our available cash flow, our ability to
obtain additional financing if necessary in the future, our flexibility in reacting to competitive and
technological changes and our operations.
We have a substantial amount of indebtedness. Our consolidated total long term debt, net of £222 million
current portion, was £5,798 million as of December 31, 2010.
Our ability to pay principal and interest on or to refinance the outstanding indebtedness depends upon our
operating performance, which will be affected by, among other things, general economic, financial, competitive,
regulatory and other factors, some of which are beyond our control. Moreover, we may not be able to refinance
or redeem such debt on commercially reasonable terms, on terms acceptable to us, or at all.
The level of our indebtedness could have important consequences, including the following:
• a substantial portion of our cash flow from operations will have to be dedicated to the payment of
interest and principal on existing indebtedness, thereby reducing the funds available for other purposes;
• our ability to obtain additional financing in the future for working capital, capital expenditures, product
development, acquisitions or general corporate purposes may be impaired;
• our flexibility in planning for, or reacting to, changes in our business, the competitive environment and
the industry in which we operate, and to technological and other changes may be limited;
• we may be placed at a competitive disadvantage as compared to our competitors that are not as highly
leveraged;
• our substantial degree of leverage could make us more vulnerable in the event of a downturn in general
economic conditions or adverse developments in our business; and
• we are exposed to risks inherent in interest rate and foreign exchange rate fluctuations.
Any of these or other consequences or events could have a material adverse effect on our ability to satisfy
our debt obligations, which could adversely affect our business and operations.
We may not be able to fund our debt service obligations in the future.
We have significant principal payments due under our senior credit facility that could require a partial or
comprehensive refinancing of our remaining senior credit facility, and the possible use of other debt instruments.
Our ability to implement such a refinancing successfully would be significantly dependent on stable debt capital
markets. In addition, we may not achieve or sustain sufficient cash flow in the future for the payment of principal
or interest on our indebtedness when due. Consequently, we may be forced to raise cash or reduce expenses by
doing one or more of the following:
• raising additional debt;
• restructuring or refinancing our indebtedness prior to maturity, and/or on unfavorable terms;
• selling or disposing of some of our assets, possibly on unfavorable terms;
• issuing equity or equity-related instruments that will dilute the equity ownership interest of existing
stockholders; or
33