MyTravel stake on offer to bondholders

MYTRAVEL is discussing offering a 20% stake in the company to bondholders as part of its negotiations to secure £220 million worth of convertible bonds by September.

Also under discussion is to extend the maturity of the bonds by three years to January 2007, a possible increase in the rate of interest payable on the bonds, and a "success fee” based on the percentage in the company's market capitalisation.

The company confirmed it remained confident in securing the deal within the agreed timescale. In April it announced it had successfully negotiated a £1.3 billion refinancing deal.