Travelex to split in half as lenders agree to refinance
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Travelex, the airport’s foreign exchange group, is set to split in two after its lenders agreed to £ 84million in new financing as part of a debt restructuring.
Travelex’s wholesale and outsourcing activities and overseas retail activities (Brazil, Middle East and Turkey, Nigeria and Asia Pacific) will form part of the business.
Warehouse Travelex will be the other party and will contain businesses from UK, Europe and North America.
Through the restructuring, Travelex will receive £ 84million in new liquidity through the issuance of new senior loan bonds as well as an 84% reduction in its existing financial debt, the group said in a statement.
The current holders of Senior Debt of Travelex will also own the business and lead it through an ad hoc committee.
Tony D’Souza, Managing Director of Travelex, said: “This agreement marks an important and positive step in the strategic initiatives that the company has carried out in recent months.
“The restructuring will provide Travelex with a stable platform with £ 84million of new liquidity and substantial debt reduction, so that it can rebuild its income under the leadership of its new shareholders.”
Travelex was part of Finbalr PLC (LON: END), which has been suspended since March after announcing a liability of US $ 100 million for checks the group was not aware of.
The coronavirus lockdown, meanwhile, has dramatically reduced the number of passengers using airports.
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