MyTravel creditors to take controlling stake

Tuesday, 13 Oct, 2004 0

MyTravel has announced details of its proposed restructure and says it has achieved break even for the past year.

According to MyTravel it will break even for the 12-month period to the end of September.

The struggling operator, which has £800 million of debt, is meeting with its lenders today to discuss the company’s restructure.

MyTravel is proposing offering the company’s creditors £800 million worth of equity, which will see them take an 88% stake in the company. The creditors comprise a number of lending institutions .

The remaining equity will be owned by bond holders, with 8% and the current shareholders with 4%.

This proposal is being made to the creditors, bond holders, and shareholders of MyTravel today, who will make a decision on whether to accept it and a decision will be made by the end of the year.

Report by Ginny McGrath



 

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Ginny McGrath



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