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MYTRAVEL has won the right to present its £800 million
debt-for-equity survival plans to creditors and
shareholders.
High Court judge Mr Justice Mann rejected the bondholders’
£216 million claims and ruled they have no economic interest
in the operator.
He backed MyTravel’s claim that the debt-for-equity deal was the
only option to avoid liquidation, with the Civil Aviation Authority
set to pull its ATOL if a financial restructure is not complete by
the New Year. Liquidation of the operator would leave bondholders –
including fund managers New Star and Fidelity and investment banks
Societe Generale and Lehman Brothers – with little chance of a
payout, as there would be no money left after the creditors had
reclaimed their money.
“It’s quite clear to me that the economic interest of the
bondholders in the company is nil,” said Mr Justice Mann.
He rejected the company original claim but allowed it to put a
revised scheme to its general creditors at a meeting on December 13
at the Institute of Electrical Engineers in London.
Robin Dicker QC said the bondholders would appeal against the
ruling.