Mon, 13 Aug 2012 | ADMINISTRATION
The owners of Travelodge are considering placing the hotels in a CVA arrangement in order to address its £500 million debt pile.
Travelodge is the second largest budget hotel operator in the UK behind Whitbread’s Premier Inn. Although Travelodge saw its profits rise by 20 per cent to £55 million last year it can no longer bear the weight of its substantial debts and increasing interest.
In a CVA the group would be able to brush off about 50 leases from its 513-strong hotel portfolio, after its landlords had refused to agree to new terms.
Goldman Sachs and New York hedge funds Avenue Capital and GoldenTree Asset Management are taking over ownership of Travelodge from Dubai International Capital, which acquired the hotel group in 2006 from private equity firm Permira for £675 million.
The trio are understood to have drafted in KPMG to advise on a restructuring of the company with a focus on how to handle its debts. KPMG recently helped Fitness First to drop about 70 of its UK-based gyms in a debt restructuring process.
An unnamed person told The Times, “If there is a CVA, the hotels involved will probably be transferred to new operators over a period of six to twelve months.”
The company is an automatic and industrial door supplier, installing a variety of systems, including but not limited to, automatic doors, fire resistant shutters, entrance barriers, roller shutters and garage doors.
Well-established company operating for over 23 years. Offers a range of driving positions, which include day runs, local runs, local shunting, nights out and tramping.
The company is a business-to-business wholesaler of cask ales, continental lagers, and craft cider. Since its establishment, the business has cultivated strong relationships with high-profile and local breweries, gaining exclusive access to their pro...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.