MYTRAVEL has sent out a formal proposal to bondholders
to extend the maturity of its £221.6 million convertible bonds.
Bondholders have been sent letters to finalise the
deal to extend the repayment of the bonds by three years to January 2007 ahead
of their meeting on September 15.
The deal – already agreed “in principle” at
the start of this month – will give bondholders a 26% stake in the company’s
existing share capital.
MyTravel says it has already received letters from
bondholders who say they will vote in favour of extending the maturity of 66%
of the outstanding convertible bonds.
The refinancing of a £1.3 billion debt
until May 2006 is dependent on these bonds being refinanced by September 30.