A recapitalisation plan agreed for business travel giant CWT will see $350 million pumped into the company.
It came just 24 hours after Minneapolis-based CWT filed for Chapter 11 bankruptcy protection in order to push through the financial restructuring.
The plan agreed by a court on Friday provides the company with the new equity to reinvest and enables all business partners and other providers of goods and services to CWT to be paid in full.
The US travel management company plans to spend $100 million on its myCWT travel management platform.
The recapitalisation, including halving its $1.6 billion of debt, was approved in what was described as an “expedited legal process” with the “overwhelming support” of CWT’s financial stakeholders.
CWT said: “As the recovery in business travel and meetings and events gains momentum, the targeted investments build on the company’s strategic development plans implemented during the pandemic.”
Additional details about CWT’s investment plans will be announced in the near term, the company added.
Chef executive Michelle McKinney Frymire said: “We are pleased to have received prompt court approval of the agreement we reached with CWT’s financial stakeholders, which positions the company for long-term success and provides significant financial resources to further grow and develop our business.
“Having reached this important milestone, we are now able to move beyond the pandemic and accelerate investments that create innovative programs and industry-leading experiences, including an enhanced myCWT platform.
“As business travel continues to recover, we look forward to building on our momentum, continuing to advance our strategic priorities for the benefit of our customers, partners and other stakeholders, and delivering exceptional experiences for our customers, travellers and attendees.”
She added: “On behalf of the leadership team, I thank all of our CWT colleagues for continuing to perform at the highest level despite the challenges created by the pandemic.
“I am tremendously proud of the many improvements we have already implemented, laying a strong foundation for our future.
“I also want to thank our financial stakeholders for their continued support and confidence in CWT, our strategy and services, and, most of all, our great people.”