Cable company Telewest's future appeared brighter as it agreed terms on a £2 billion loan.

The group has been locked in talks with banks and bondholders over new facilities to restructure £3.5 billion of debt.

Telewest said a month ago it was close to reaching agreement on a debt-for-equity swap.

Even though the deal is likely to leave shareholders with a fraction of the firm, shares in the volatile stock rose 34 per cent.

Like rival NTL, the company has become weighed down in debt after a rapid expansion programme.