MyTravel’s day in court

The industry giant MyTravel will today go to court to keep a financial restructuring scheme on track and try to prevent the threatened removal of its operating licence by the Civil Aviation Authority. The court appearance follows the failure to convince the company’s bondholders to support a reorganisation that would leave them with 8 per cent of the company’s equity. Chairman Michael Beckett said he was “disappointed” that holders of only 0.23% of the bonds had pledged their support but pleased that the majority of lenders were now behind its plans. Beckett said: “I am disappointed that so far the bondholders have not supported our consensual restructuring proposal, which I believe is more than fair to them. However I am encouraged that we have now received the support of the substantial majority of our lenders and facility providers. “Restructuring the balance sheet is in the best interests of all our stakeholders. It will provide a sound basis for the business going forward and allow us to concentrate on offering our millions of customers good value, quality holidays.”