MyTravel set to shake off debt

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.