Apologies,
U/S President is right, when the bondholders opposed the initial 8pc, MyTravel then quickly said it would use a scheme of arrangement to force through the restructuring. MyTravel added that it would cut the bondholders' stake to 4pc if it had to go to court to win permission for such a scheme and 2pc if it actually implemented it.
Quote from
MyTravel Group plc: Unaudited results for the 13 months ended 31 October 2004:
Pursuant to agreements entered into between the Company, MyTravel Holdings and the banks and other financial institutions whose claims are to be converted to equity, MyTravel Holdings will issue new shares to those converting creditors. MyTravel Holdings will also offer to acquire the Bonds in exchange for the issue of new shares.
If the restructuring is implemented pursuant to the scheme of arrangement, following completion the new shares of MyTravel Holdings in issue will be held as follows:
• Converting creditors will hold 94%;
• Bondholders will be offered 2%;
• Shareholders will hold 4%.
Resolutions to approve the scheme of arrangement were passed at meetings of the shareholders and general creditors of the Company held on 13 December 2004. To become effective the scheme of arrangement must be approved by the High Court, which approval is expected to be given at a hearing on 20 December 2004.