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MyTravel in financial restructuring talks
MyTravel is expected to unveil plans to stabilise the loss-making company.
The group, which includes Airtours and Going Places, is meeting its major lending banks to propose a financial restructuring.
The aim is to cut its £1.3 billion debt burden.
“The form and terms of any restructuring remains subject to negotiation,” the company said.
In a trading statement, MyTravel said its results for the year to September are likely to show a “significant improvement”.
Chief executive Peter McHugh said the UK division would be profitable for the summer season after a difficult start.
“For the 12 months to September 30, while the UK division will still show a loss, its performance will be significantly better than in 2003,” he said.
“Both Northern Europe and North America are having excellent summers and will be profitable for the current year.
“For the winter season, bookings are encouraging for all divisions.”
MyTravel has shed a string of businesses including its cruise arm following a series of damaging profit warnings in 2002 which led to a raft of senior management leaving.
MyTravel Chairman Michael Beckett said: “We announced at the Annual General
Meeting earlier this year the Board’s intention to seek to rebuild the financial
position of the group and the initiation of a process to achieve this.
“Although MyTravel’s current financial arrangements are in place until mid-2006, the board believes it is in the interest of the company and all its stakeholders to
complete the restructuring at the earliest opportunity.
“I am confident that MyTravel will emerge from the restructuring process with a significantly improved balance sheet that will give us a sound basis for the health of the business going forward.”
Report by Phil Davies
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