MyTravel on road to bonds deal
FOUR months ago MyTravel was on the edge of the precipice. Since then the former Airtours group seems to have taken several steps back toward safety.
To get there MyTravel needs consent from its bondholders. Now it says it is 'confident' a deal will be struck.
MyTravel owed banks £1.3bn and bondholders £220m. It has agreed a bank refinancing and now must sort out the bonds.
The plan is for holders to convert 6% of them into shares and warrants, giving them up to 26% of MyTravel's equity.
In return for converting £13m of bonds, they will get a 'success fee' of up to £11m, linked to the recovery in the group's market value.
MyTravel is not negotiating from strength, but this deal leaves 74% of the equity intact - far better than the wipe-out at Marconi or Telewest.
MyTravel shares, which hit 8p in April, rose 4 1/2p to 37 1/2p. The bonds, once £26.50, rose £2 to £59.50.
