Travelodge avoids collapse with restructuring
Saturday 18 August 2012
Travelodge, the debt-laden budget hotel group, has staved off collapse with a radical financial restructuring that will see more than £700m of loans written off.
The 505-site chain – acquired by Dubai International Capital (DIC) in a deal worth £675m deal in 2006 – has also proposed to creditors a controversial insolvency procedure to slash its rental bill and offload nearly 50 under-performing hotels.
Under the debt restructuring, the investment bank Goldman Sachs and two hedge funds – Avenue Capital and GoldenTree Asset Management – have replaced DIC as the owners of Travelodge. Of the chain's bank debt of £635m, £233m has been written off and £71m has been repaid.
Travelodge delivered profits of £55m last year, but its debt burden had left the chain on the brink of administration. It has asked creditors to back a company voluntary arrangement to reduce rents on 109 hotels .
Have shock jocks gone too far after Rush Limbaugh called Sandra Fluke a slut?
The ‘Beverly Hills’ of Surrey pays more income tax than big cities of the North
British business: We need to stay in the European Union - or risk losing up to £92bn a year
World news in pictures
British father faces charges after confessing to slitting his two children's throats in Lyon flat
- 1 The ‘Beverly Hills’ of Surrey pays more income tax than big cities of the North
- 2 Gareth Bale agrees new £130,000-a-week Tottenham contract - but can leave next season for £50m
- 3 'Revenge porn' is no longer a niche activity which victimises only celebrities - the law must intervene
- 4 The moral case on tax avoidance is overwhelming - and we all know Google wants to do the right thing
- 5 Sam Wallace: The second coming of Jose Mourinho at Chelsea will be a reunion that can only end in tears
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Win anything from gadgets to five-star holidays on our competitions and offers page.
iJobs Money & Business
£150 - £250 per day: Orgtel: KYC Analyst - London - Banking - £150-250/day C...
£500 per day: Orgtel: A top tier banking client urgently requires Finance Gove...
£500 - £680 per day: Orgtel: Quantitative Risk Analyst, Front Office/Risk Bank...
£55000 - £60000 per annum + Benefits + Pension: Orgtel: Quantitative Analyst, ...