The troubled industry giant MyTravel was yesterday accused of trying to create a “potential whitewash” that would prevent directors being called to account for their “mismanagement” of the company.
The group is facing a High Court challenge, whereby bondholders are asking the court to rule against a refinancing that they do not approve of.
As reported, the company offered bondholders eight per cent of the restructured company, but when that offer was rejected, it said it would then cut their stake to two per cent.
According to the Daily Telegraph, the lawyer representing the bondholders, said the company had no right to attempt this, asserting that if the court allowed the move, it “would be participating in a process that would resemble a fraudulent conveyance and create a potential whitewash of claims against directors for mismanagement of the company”.
MyTravel is claiming that it will only be able to continue trading if the financial rearrangement is allowed to go ahead.
Report by Tim Gillett, News From Abroad Ltd
