Director makes sudden exit from MyTravel
Saturday 23 August 2003
The rescue deal to save the highly indebted holiday company MyTravel was yesterday thrown into uncertainty after its finance director suddenly resigned ahead of a crucial meeting with bondholders.
Kazia Kantor, 53, yesterday left the company with immediate effect. She had only been in the post since November, having stepped in from her position as a non-executive director to take the reins when the previous management team resigned.
Bondholders were understood to be very surprised by the move, which comes only three weeks before they are expected to agree a refinancing deal that is vital to securing the future of the company. If MyTravel fails to secure the deal, it will be in breach of its banking covenants and will have to repay £1.3bn of debt.
Analysts, too, were concerned at the sudden timing of the announcement, and are keeping the beleaguered company on their "critical list".
"There are a lot of questions we now want to ask," said Nigel Parsons at Williams de Broe. "There may well be more problems to find within the company and a lot more work to do."
Shares in the company fell 5.5 per cent to close at 25.5p.
A series of accounting errors at the group, formerly known as Airtours, dogged the group last year, compounding the problems brought on by a slump in business following 11 September. It has issued three profits warnings in the past 18 months and now needs to secure a three-year extension on the repayment of £221.6m of convertible bonds, or the rest of its £1.3bn of debt will be called in by the banks.
The deal will give bondholders a 21 per cent stake in the company and an improved annual interest rate of 7 per cent.
The company last week announced that 66 per cent of bondholders had given their support to the refinancing package. But it needs the support of 75 per cent before it can take the deal forward. MyTravel has said that most of its bankers and other creditors have already agreed the terms.
"Kazia took on the role of group finance director at a critical point for the company in November 2002 and has played a vital part in the refinancing that enables us to implement our turnaround plan," said Eric Sanderson, the chairman.
John Darlington will succeed Ms Kantor until a permanent replacement is found. He has been advising the company on its refinancing for the past few months and is known as a turnaround specialist. Mr Darlington has previously advised HP Bulmer.
Ms Kantor, who is a former finance director at Coats Viyella, was earning a basic salary of £380,000, and negotiations are going on over a settlement agreement.
- 1 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 2 Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
- 3 Sussex couple die in suspected Christmas Day 'suicide pact'
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...