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.
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.