MYTRAVEL’S bondholders have ditched plans to appeal
against the company’s £800 million debt-for-equity swap
deal.
The ad hoc committee of bondholders decided to drop its legal
challenge to the scheme of arrangement in return for 8% of the new
holding company.
Shareholders will receive 4%, with the creditors taking 88%.
MyTravel has also agreed to pay the bondholders’ legal
costs.
Extraordinary general meetings of shareholders and bondholders
take place on December 24 and 29 respectively to vote and give
official backing to the new scheme.
Although MyTravel will continue to seek court approval for the
original scheme, it will not roll it out if the revised proposal is
formally approved by bondholders.
Shares in the new company could be issued as soon as December
31.
“The bondholders have always been open to a consensual deal,”
said a spokesman for the bondholders.
Meanwhile, a MyTravel spokesman said: “The restructure is
nearing completion and will provide a sound foundation for the
future of the group.”