Travelodge Agrees to a Financial Restructuring and Initiates a Company Voluntary Arrangement
(firmenpresse) - LONDON, UNITED KINGDOM -- (Marketwire) -- 08/22/12 -- Travelodge (The Company), the , is pleased to announce that it has agreed a financial restructuring, which will secure the long-term future of the business. This will be undertaken in conjunction with a Company Voluntary Arrangement (CVA), which was launched today and will reduce levels of rent at certain sites.
Travelodge has worked hard alongside its three key investors, GoldenTree Asset Management, Avenue Capital Group and Goldman Sachs, to reach agreement on its financial restructuring and believes that it provides further stability to the business and demonstrates confidence in the Company.
The key terms of the financial restructuring are as follows:
KPMG is supervising the CVA process and will be leading discussions with the landlords. The CVA is expected to take approximately 17 days to complete.
Other than certain landlords, the CVA will not impact any other party associated with Travelodge. There will be no impact on the operational running of the business, all of Travelodge's hotels will continue to operate normally, all suppliers will continue to be paid as normal and customers will experience no changes to bookings.
Under the terms of the proposed CVA:
Commenting on today's announcement, Grant Hearn, CEO, said:
"The financial restructuring, including the CVA, will leave Travelodge in a much stronger position going forward and will ensure a long-term, sustainable future for the business. Once this joint process is completed, Travelodge's debt, interest costs and lease liabilities will be significantly reduced. This new appropriate level will provide greater security for our staff, suppliers, landlords and developers. This is a successful brand with millions of customers and the Company will emerge in excellent shape from this process."
A spokesperson from GoldenTree Asset Management, said:
"We are pleased to have agreed upon a financial restructuring for this business. Travelodge is an excellent company with great management and employees, and this action will secure the future of the Company for the long-term."
A spokesperson from Avenue Capital Group, added:
"We believe that this financial restructuring, along with the CVA process, will enable Travelodge to emerge as a stronger business and to take advantage of the great opportunities available to it as the UK's leading budget hotel operator."
About Travelodge:
The first budget hotel brand to launch in the UK in 1985, Travelodge now operates over 500 hotels and over 35,400 rooms across the UK, Ireland (11) and Spain (4). Travelodge plans to grow its estate to 1,100 hotels and 100,000 rooms by 2025. Over 13 million people stayed with Travelodge last year and 90% of reservations are currently made online at travelodge.co.uk, where room rates start at GBP 19 per night. The chain employs over 6,000 staff.
Contacts:
Travelodge Press Office
01844358703
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 22.08.2012 - 10:21 Uhr
Sprache: Deutsch
News-ID 176619
Anzahl Zeichen: 0
contact information:
Town:
LONDON, UNITED KINGDOM
Kategorie:
Hotels
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