More from Reuters. Doesn't seem to make things any clearer
UPDATE 2-UK's MyTravel claims court win, bondholders demur
Wed 24 November, 2004 14:28
(Adds bondholder quote)
By Gerard Wynn
LONDON, Nov 24 (Reuters) - UK travel firm MyTravel MT.L has claimed a victory, subsequently denied by its bondholders, after London's High Court ruled on a dispute over who gets what in an 800 million pounds ($1.49 billion) debt-for-equity swap.
The court said on Wednesday that bondholders of indebted MyTravel would get nothing from a liquidation of the firm, but did not decide on whether to exclude bondholders from voting on MyTravel's proposed restructuring, which they oppose, saying it would consider new evidence from the company that afternoon.
...
The High Court said bondholders would get nothing from a liquidation -- which is usually enough to call a scheme of arrangement -- but also blocked the scheme from going ahead on a technical point, saying it would consider fresh evidence from MyTravel on whether it can hold a scheme of arrangement.
The confusion led to a dispute over victory.
"MyTravel Group PLC welcomes today's decision by the High Court that the company is able to restructure through a scheme of arrangement without the approval of the convertible bondholders, who have no economic interest in the company," MyTravel said in a statement.
But a source close to bondholders told Reuters they would appeal against the decision on their role in a liquidation, and also denied MyTravel had scored a victory.
"The court said their proposed scheme of arrangement was unlawful. How is that a victory for the company?"