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View Full Version : MYTravel out of the woods??? - for now???


aaahhhbugga
13th Oct 2004, 12:29
Posted to LSE this morning

MyTravel Group plc
Restructuring Proposal

MyTravel is today meeting with representatives of its major lending banks and bonding facility providers to provide details of its proposed balance sheet restructuring. MyTravel also confirms that its operating result for the 12 month period to 30 September 2004 will be approximately break-even.

The key points of the proposed restructuring are:

 The conversion into MyTravel equity of approximately £800 million of unsecured debt and facilities, including:
o £250 million revolving credit facility;
o US$100 million US private placement;
o £210 million minority interest preference shares;
o certain elements of aircraft lease financing arrangements;
o £216 million of convertible bonds.

 On completion of the restructuring:
 Converting creditors (other than bondholders) would be issued new shares representing 88% of the company’s enlarged share capital.
 Converting bondholders would be issued new shares representing 8% of the company’s enlarged share capital. This allocation has been made on a similar basis to the other converting creditors.
 Shareholders would retain 4% of the enlarged share capital.

 The provision at no material cost to the company of new 5 year committed facilities by the parties to the company’s £400 million bonding facility and providers of bilateral guarantee and letters of credit facilities (amounting in aggregate to approximately £167 million).

 The company has proposed a timetable for the restructuring that would see it completed by the end of 2004.

 On completion of the restructuring, the company’s debt will be approximately £140 million of aircraft finance leases.

In order to satisfy EU rules as to airline ownership, the Board proposes to issue Ordinary Shares to converting creditors and bondholders who are EEA nationals and non-voting Preference Shares, convertible into Ordinary Shares, to those who are non-EEA nationals. The Board will also propose changes to the company’s Articles to ensure compliance with the rules.

It is the Board’s intention to approach this restructuring on a consensual basis. It plans to seek the agreement of the company’s lending banks and facility providers and the approval of the company’s convertible bondholders and ordinary shareholders.

The proposals are being recommended to lenders and facility providers by the company’s lead bankers.

Roger Dee
13th Oct 2004, 13:11
I see the share price has taken a kicking. Its now 4.91 pence, down nearly 10%

lurkio
13th Oct 2004, 13:45
10% of very little is..... very little.
Soon to be worth absolutely bugger'all.

Good news for jobs I hope.

Orion Man
13th Oct 2004, 17:23
Good news for the staff hopefully who have not been axed and maybe a final chapter in what has been a long running saga. The ordinary shareholder will be the victim hence the shareprice drop. The banks will just about own the company now.

Thomas_Cook_757-300
13th Oct 2004, 18:40
Hi,

Great news for MyTravel Group! The share price closed down just 0.25p today which isn't to bad and remained above the £5 mark.

Regards
Thomas_Cook_757-300

mytfly
13th Oct 2004, 18:47
£5 ???

It used to be £5.00 years ago, but not now!

upperecam
14th Oct 2004, 11:09
Wonderful sleight of hand and £1.2 BILLION of debt disappears!
No, this gives the controlling parties the ability to dominate as preferential creditors to everything including pension funds, tax liabilities et al. Watch this space.

:} :uhoh: :ooh: :{ :mad:

763 jock
14th Oct 2004, 20:09
Pension funds? MYT have a money purchase scheme, so how do the "new owners" get any control of that? Just curious...

kick the tires
15th Oct 2004, 18:37
MyTravel shareholders to lose out
Robert Lea, Evening Standard
13 October 2004

INVESTORS in MyTravel are set to be all but wiped out after the troubled tour operator became the latest top company to unveil a major debt-for-equity swap.

In a £1.3bn restructuring, shareholders will be left with just 4% of their company. MyTravel shares which traded as high as 544p five years ago, fell 10% today on news of the restructuring plan, down 0.5p to 4.8p.

The company hopes to get its restructuring completed by the end of the year when lenders, led by Royal Bank of Scotland and Barclays, bondholders and other creditors are issued with equity worth about £800m.

In addition to renewed bonding facilities, under the proposals, the company will be left with liabilities of around £300m. It is hoped the shareholders and bondholders will approve the plans at extraordinary meetings before the end of the year.

In line with other traditional package holiday operators, MyTravel has been hurt by the aggressive pricing of budget airline pioneers Ryanair and easyJet, as well as the rise of internet travel agents such as lastminute.com. Expedia and Travelocity.

Today the company indicated it is still under the cosh as it said it expects only to break even in the year to the end of September.

However, that's a significant improvement compared with an operating deficit of £356m last year when other write-offs and provisions took losses to £911m.

spy
15th Oct 2004, 22:07
Some of you guys are unreal! For over two years many of you have been telling us how MYT was going down the pan and yet here it is about to turn the corner! So all you predictors of doom and gloom give it a rest!

Dogs_ears_up
15th Oct 2004, 23:44
So all you predictors of doom and gloom give it a rest! Maybe they're upset, because they are shareholders or bondholders?

Just a thought...:E

spy
16th Oct 2004, 10:24
Well I lost over £10000 pounds when the share price dropped and by the sounds of it I will lose some more shortly thats the name of the game if you play with shares!

My comments were directed at those who just love bad news and make out they know far more than they do. Many other companies have had problems and some have even failed over the last two years but their are some on these forums who seem to have taken great pleasure in MYT's problems. Yet I see little on other companies that have or are having problems or that have even failed on these pages.

With luck MYT is back on the road to recovery though there are still problems ahead things are getting better.