http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/9520254/Travelodge-landlords-vote-for-rescue-deal.html
By Telegraph Staff 3:06PM BST 04 Sep 2012 The proposed company voluntary arrangement was accepted by 97pc of creditors - well above the 75pc needed. It will enable Travelodge to exit poorer performing leases, strengthen its balance sheet and free itself of a crippling debt burden. Under the deal, 49 hotels will be sold to other operators and rent for 109 landlords will be cut by 25pc. Landlords at the affected hotels will see a return of 23.4p in the pound, said KPMG, the accountancy firm which organised the CVA. This compares with just 0.2p if the company had been placed into administration. The debt restructuring at Travelodge will involve the write-off of £476m of shareholder loan notes, the repayment of a further £71m of bank loans and the extension of the maturity on the remaining £329m of debt until 2017. The company's three main lenders - Goldman Sachs and two US hedge funds, Avenue Capital and GoldenTree Asset Management - have already seized control of the chain from Dubai International Capital, which paid £675m for Travelodge in 2006. They are providing a cash injection of £75m, with £55m being spent on refurbishing 175 of Travelodge's hotels starting early next year. Travelodge, which operates more than 500 hotels across the UK, Ireland and Spain and employs more than 6,000 staff, has traded well since the financial crisis and this deal is expected to put its future on a stable footing. _______________________________________________ Leedslist mailing list Info and options: http://mailman.greennet.org.uk/mailman/listinfo/leedslist To unsubscribe, email [email protected] PETE CASS (1962 - 2011) Rest In Peace Mate
