DEBT-laden MyTravel has given itself just two months to
complete its £800 million debt for equity swap.
The operator wants to complete the swap, which will hand its
banks and creditors 88% of the company in exchange for writing off
its debt, by the end of the year.
If the proposal is accepted, shareholders will be left with just
4% of the company, with bondholders getting 8%.
On completion of the deal, MyTravel will have a much-reduced
£140 million debt relating to aircraft leases.
The move will ease the burden of the company’s massive
interest payments. The operator has also confirmed it expects a
break-even operating result for the year to September 30.