Will MY-TRAVEL go Bust ? (Merged)
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Comment from a financial website
Bondholders of my travel led by Fidelity, Society Generale, Leeman Brothers & New Star yesterday asked the High Court to block the tour operators proposals to execute a £1.3 billion arrangement which would bypass its bondholders - this one will run and run.
Bondholders of my travel led by Fidelity, Society Generale, Leeman Brothers & New Star yesterday asked the High Court to block the tour operators proposals to execute a £1.3 billion arrangement which would bypass its bondholders - this one will run and run.
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When is everyone going to wake up and smell the roses.
I agree with all the sentiments previously aired regarding the management/board , the 6 figure pay offs and the alleged criminal financial irregularities. That was then this is now.
This is a company who's debts are £1300 million pounds. This is a company who's bondholders DO NOT want anything to do with any debt for equity swap.
In any other line of business the receivers would have been called in months if not years ago.
This is an airline with a staggeringly large debt and by continuing to trade is only prolonging the agony for everyone invoved.
Enough is enough. In business, it is a fact that unfortunately some companies do not survive, for whatever reason.
If I were in MYT now I would be saying to every single one of you..... get out now and take what you can because when ... and I mean when, not IF they go under, you will be the last guys that will be on the list to be paid. THAT IS A FACT.
I also feel very strongly that the CAA are being as toothless as ever. It is their responsibility to monitor the financial viability of any company and they are the ones that approve the AOC's. Quite plainly this is a dead company and by not pulling the plug now the CAA are leaving themselves wide open to all sorts of questions regarding their authority and regulation of a fiercely competitive industry.
My deepest sympathies go out to all of you who work at MYT. You have been forced into an awful situation by incompetent and greedy management. Good luck too you all for the future.
I agree with all the sentiments previously aired regarding the management/board , the 6 figure pay offs and the alleged criminal financial irregularities. That was then this is now.
This is a company who's debts are £1300 million pounds. This is a company who's bondholders DO NOT want anything to do with any debt for equity swap.
In any other line of business the receivers would have been called in months if not years ago.
This is an airline with a staggeringly large debt and by continuing to trade is only prolonging the agony for everyone invoved.
Enough is enough. In business, it is a fact that unfortunately some companies do not survive, for whatever reason.
If I were in MYT now I would be saying to every single one of you..... get out now and take what you can because when ... and I mean when, not IF they go under, you will be the last guys that will be on the list to be paid. THAT IS A FACT.
I also feel very strongly that the CAA are being as toothless as ever. It is their responsibility to monitor the financial viability of any company and they are the ones that approve the AOC's. Quite plainly this is a dead company and by not pulling the plug now the CAA are leaving themselves wide open to all sorts of questions regarding their authority and regulation of a fiercely competitive industry.
My deepest sympathies go out to all of you who work at MYT. You have been forced into an awful situation by incompetent and greedy management. Good luck too you all for the future.
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I know Mytravel have been in the myer for a while now but with so many different intrests Flights/Hotels/ships etc. Why cant they just sell some of their (ahem) assets (Hotels/ships) and try and claw back some of the money they owe.
How many airlines have gone bust and come back stronger (maybe more than once but when they have got the right mix of ingrediants) like Flybe formally Jersey and British european. Or am I missing something? (probably)
T21
How many airlines have gone bust and come back stronger (maybe more than once but when they have got the right mix of ingrediants) like Flybe formally Jersey and British european. Or am I missing something? (probably)
T21
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Freeway
Utter garbage and may be a tad insensitive? However, time will tell whether you are right or not. So you say it is FACT that MYT are going bust, so just when is this going to happen? Next week, by Christmas, by the start of the summer season? Please let me know so I can email you when it does happen to say, "sorry I was wrong, you were right, oh! Yeh! And do you know anyone who's recruiting because I need a job?"
Utter garbage and may be a tad insensitive? However, time will tell whether you are right or not. So you say it is FACT that MYT are going bust, so just when is this going to happen? Next week, by Christmas, by the start of the summer season? Please let me know so I can email you when it does happen to say, "sorry I was wrong, you were right, oh! Yeh! And do you know anyone who's recruiting because I need a job?"
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terrier21.
You might find that they can not sell the ships and assets because they do not have any. The point is they own very little of what they operate.
This why the CAA could or as some say "should" have pulled the bond a long time back.
You might find that they can not sell the ships and assets because they do not have any. The point is they own very little of what they operate.
This why the CAA could or as some say "should" have pulled the bond a long time back.
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Freeway
The CAA will not pull the bond as long as the banks support the company. If they did they would find themselves getting sued by the banks, remember the CAA is also a private company that has a mandate from the Government to regulate the industry. I can’t ever recall a bond being pulled by the CAA while a company has the full support of its banks. As for the company going bust we have been listening to guys like you for two years and the company is still here! I suspect it will be here for some time to come.
Cruise ships and hotels have already been sold! I feel sorry for the Bond Holders as I think they will get shafted along with the share holders, at best they will get another one or two percent. I had a look through the companies act and if the company has the required 75% of creditors on side, which it claims it has, namely the Banks, the courts are unlikely to block the deal. The threat of the CAA bond being pulled I suspect is based on the Banks walking away if the debt for equity swap does not happen and I think on balance there is very little chance of it not happening.
Consider this, the Banks are already into MYT for £800 million or more, if the company folds they stand to cough up another 200 to 400 million to cover the CAA bond! What do you think the chances are of the banks walking away from a company that has turned its operation around? If MYT goes they get next to nothing, if it continues on a sound footing and the share price rises over the next 2 to 3 years they stand to recover most of their money. The share price only needs to rise to around 15 or 20p and the banks make back their investment! If MYT continue then one of its competitors will not be here two or three years from now! Not sure which one as they all have there own problems and the low cost airlines are hitting everyone in the short sector tour market! MYT have one more hurdle and then they will be in a very strong position compared to the others!
All of the above said, it could still go wrong but I think the odds are very much in favour of MYT getting past this.
The CAA will not pull the bond as long as the banks support the company. If they did they would find themselves getting sued by the banks, remember the CAA is also a private company that has a mandate from the Government to regulate the industry. I can’t ever recall a bond being pulled by the CAA while a company has the full support of its banks. As for the company going bust we have been listening to guys like you for two years and the company is still here! I suspect it will be here for some time to come.
Cruise ships and hotels have already been sold! I feel sorry for the Bond Holders as I think they will get shafted along with the share holders, at best they will get another one or two percent. I had a look through the companies act and if the company has the required 75% of creditors on side, which it claims it has, namely the Banks, the courts are unlikely to block the deal. The threat of the CAA bond being pulled I suspect is based on the Banks walking away if the debt for equity swap does not happen and I think on balance there is very little chance of it not happening.
Consider this, the Banks are already into MYT for £800 million or more, if the company folds they stand to cough up another 200 to 400 million to cover the CAA bond! What do you think the chances are of the banks walking away from a company that has turned its operation around? If MYT goes they get next to nothing, if it continues on a sound footing and the share price rises over the next 2 to 3 years they stand to recover most of their money. The share price only needs to rise to around 15 or 20p and the banks make back their investment! If MYT continue then one of its competitors will not be here two or three years from now! Not sure which one as they all have there own problems and the low cost airlines are hitting everyone in the short sector tour market! MYT have one more hurdle and then they will be in a very strong position compared to the others!
All of the above said, it could still go wrong but I think the odds are very much in favour of MYT getting past this.
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encuraging words - i hope for all their steaks your rite spy.
as for all those doom and gloom merchants wishing the company to go bust, spare a thought for all those whoze living relies on they're myt paypacket. it must have been bad enough for them to endure this over the past cupple of years, let alone the company going under. there for the grasse of god go eye. for real.
as for all those doom and gloom merchants wishing the company to go bust, spare a thought for all those whoze living relies on they're myt paypacket. it must have been bad enough for them to endure this over the past cupple of years, let alone the company going under. there for the grasse of god go eye. for real.
Alba Gu Brath
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dada
It is indeed very hard for people emplyed by MYT to read in every media medium that their company is about to go under. It is even harder when your despatcher tells you on departure from the UK that the company will be bust by the time you get back! This scenario has happened on more than one occassion over the last 2 years. Nothing like a bit of professional emapthy.
I find it hard to feel sorry for the bond holders. They were under the impression the were investing their money in a fail safe high interest account and would be looking forward to a fat pay cheque. Since it now turns out the are not gonna get their big payout they are trying to hold the company to ransom, and threatening a court with accessory to commit fraud is not going to help their cause, IMHO. I can't help but feel similarities with the Lloyds 'Names' a few years ago.
Free means for nothing, and nothing comes for free.
It is indeed very hard for people emplyed by MYT to read in every media medium that their company is about to go under. It is even harder when your despatcher tells you on departure from the UK that the company will be bust by the time you get back! This scenario has happened on more than one occassion over the last 2 years. Nothing like a bit of professional emapthy.
I find it hard to feel sorry for the bond holders. They were under the impression the were investing their money in a fail safe high interest account and would be looking forward to a fat pay cheque. Since it now turns out the are not gonna get their big payout they are trying to hold the company to ransom, and threatening a court with accessory to commit fraud is not going to help their cause, IMHO. I can't help but feel similarities with the Lloyds 'Names' a few years ago.
Free means for nothing, and nothing comes for free.
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Echomikeecho- I am sorry that you feel that my input is "garbage ". I assure you that I stand by what I wrote and many others agree with my sentiments.
I am equally sorry that you feel that I am being insensitive towards the guys and girls at MYT. All that I wanted to do was give them a heads up, and encompass my and many others, points of view.
I am not going to turn around and tell you specifically when the company will fold. I do not know when in the near future this will happen, I am not Mystic Meg. It, however, does not take Mystic Meg to tell you that things at MYT are on there way out.
I stand by my posting and alll that I have said in it. I believe it is a true and frank synopsis of what is on going in the unfortunate world of MYT.
Spy - how good it is to receive sensible discussion on this forum. I agree with what you are saying regarding the shafting of the bondholders, however, experience tells me that they are the last people you want to be pi55ing off. I really don't believe the company will get a favorable ruling in the courts.
Time will tell.
After all that,
I still wish all at MYT the best for the future.
I am equally sorry that you feel that I am being insensitive towards the guys and girls at MYT. All that I wanted to do was give them a heads up, and encompass my and many others, points of view.
I am not going to turn around and tell you specifically when the company will fold. I do not know when in the near future this will happen, I am not Mystic Meg. It, however, does not take Mystic Meg to tell you that things at MYT are on there way out.
I stand by my posting and alll that I have said in it. I believe it is a true and frank synopsis of what is on going in the unfortunate world of MYT.
Spy - how good it is to receive sensible discussion on this forum. I agree with what you are saying regarding the shafting of the bondholders, however, experience tells me that they are the last people you want to be pi55ing off. I really don't believe the company will get a favorable ruling in the courts.
Time will tell.
After all that,
I still wish all at MYT the best for the future.
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Freeway
Most of us have been through company failures several times before! I have to say I have never seen a campany or it's staff go through this sort of torture.
I do believe MYT will prevail and continue in one form or another. Make no mistake after two years we are all fully aware how close we have come and that we are not out of the woods yet! For me the worst part has been the press and some of the postings here on PPRUNE. It is sad that on a forum for Professional Pilots there is not more unity and support. You expect it from the blood sucking news paper types! But do you really think MYT staff need to be told about their situation? We know only to well!
I understand you have a valid point of view and you could be right at the end of the day but the only fact at the moment is that no one knows how this will play out! My guess is MYT will be saved by the size of it's debt, if they lose the court case then they will negotiate with the Bond Holders! My view is they always intended to go down the court route regarding the Bond Holders as they probably knew they would never agree to a debt for equity swap unless they got a large slice of the company.
Most of us have been through company failures several times before! I have to say I have never seen a campany or it's staff go through this sort of torture.
I do believe MYT will prevail and continue in one form or another. Make no mistake after two years we are all fully aware how close we have come and that we are not out of the woods yet! For me the worst part has been the press and some of the postings here on PPRUNE. It is sad that on a forum for Professional Pilots there is not more unity and support. You expect it from the blood sucking news paper types! But do you really think MYT staff need to be told about their situation? We know only to well!
I understand you have a valid point of view and you could be right at the end of the day but the only fact at the moment is that no one knows how this will play out! My guess is MYT will be saved by the size of it's debt, if they lose the court case then they will negotiate with the Bond Holders! My view is they always intended to go down the court route regarding the Bond Holders as they probably knew they would never agree to a debt for equity swap unless they got a large slice of the company.
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I reckon that spy's analysis is pretty good. MyTravel really ran out of their own money a couple of years or so ago. Since then what they have been doing is retrench to a core level of profitable activities. Obviously the banks think there is a profitable core there. The company has actually continued to do quite well in Canada but it faces a relentlessly competitive market in Europe. It may or may not succeed in its efforts to survive. I do not have access to any maanagement data in the company but what I can tell you is that the revocation of operating licences by the CAA is regarded by them as very much the last resort. Prior to that any company regarded as high risk goes into intensive care. My Travel has been in this condition for some while. It is an onerous process that requires almost constant dialogue with the CAA. Keeping cash flow at or above forecast is the most important single thing. There may well have to be more brand or asset sales in order to achieve this. If the cash flow does drop below the forecast that will be known soon. After all January and February are still the peak months for the taking of deposits. If the company achieves its forecasts for that period it is likely to be safe at least until the end of next summer. If it can't achieve its forecasts then it enters a new period of danger. In the meantime let us hope that the management really is in control of the cash.
The last thing the company needs at this time is any drop in consumer confidence in the product. If consumer support drops away then forecasts of doom will become self-fulfilling. What travel agents know is that if the company does fail it will prove very easy for its competitors to provide alternative capacity at very short notice. I would be astonished if TUI, Thomas Cook and First Choice do not have contingency plans all ready to roll.
If the banks have any security in the aircraft fleet they will be able to place the Airbus types very easily in the market.
The last thing the company needs at this time is any drop in consumer confidence in the product. If consumer support drops away then forecasts of doom will become self-fulfilling. What travel agents know is that if the company does fail it will prove very easy for its competitors to provide alternative capacity at very short notice. I would be astonished if TUI, Thomas Cook and First Choice do not have contingency plans all ready to roll.
If the banks have any security in the aircraft fleet they will be able to place the Airbus types very easily in the market.
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Freeway
Thanks for your measured reply. We obviously agree to disagree on both the tone of your comments and the fate of MYT. I still object most strongly to the certainty in your post that MYT is going under, however, accept it is a possibility (but I don't think will happen now) and if it does, then you would have been right. However, I'll gladly take your appology when it turns out that you were wrong and I would then also advise you to take a bit more care and thought in posting on threads that are obviously quite sensitive to many of the readers.
Thanks for your measured reply. We obviously agree to disagree on both the tone of your comments and the fate of MYT. I still object most strongly to the certainty in your post that MYT is going under, however, accept it is a possibility (but I don't think will happen now) and if it does, then you would have been right. However, I'll gladly take your appology when it turns out that you were wrong and I would then also advise you to take a bit more care and thought in posting on threads that are obviously quite sensitive to many of the readers.
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Hopefully it will never happen and MYT will get through this but with all the press reports it doesn't look good (Mail on sunday again)
I know that the other major operators have plans in place just incase it does happen.
I know that the other major operators have plans in place just incase it does happen.
Keeping Danny in Sandwiches
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Guys,
I am in awe of your loyalty, however MYTravel only pay your salaries while you work for them, you are not attached to them in any other way so don't feel thay you owe them anything. If you can find a better job go and get it. If not, don't hang on until the end then shed a tear like the staff of Courtline in the 70's.
As you have already seen a steady stream of halfwits have come into the company, made a financial mess then gone away with a couple of million in their pockets. Take a lesson from them. "Loyalty" is the last refuge of a desperate management trying to keep its vital employees.
Look after yourself and your families, and the best of luck to you all whatever you decide to do.
I am in awe of your loyalty, however MYTravel only pay your salaries while you work for them, you are not attached to them in any other way so don't feel thay you owe them anything. If you can find a better job go and get it. If not, don't hang on until the end then shed a tear like the staff of Courtline in the 70's.
As you have already seen a steady stream of halfwits have come into the company, made a financial mess then gone away with a couple of million in their pockets. Take a lesson from them. "Loyalty" is the last refuge of a desperate management trying to keep its vital employees.
Look after yourself and your families, and the best of luck to you all whatever you decide to do.
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Well, as of this morning the High Court has turned down MYT's plans to force through the debt/equity deal.
MYT are to put a revised plan to the court later this afternoon for review. Desperate measures for desperate times.......
If the court rejects this next proposal, I can't see how they can possibly survive, so I hope for the sake of their employees they have some success.
Sadly, public confidence and those of travel agents goes down and down and that will not help their cause. My local travel agent already refuses to accept MYT bookings because he doesn't want to be left sorting out the mess for his customers IF it does all collapse.
MYT are to put a revised plan to the court later this afternoon for review. Desperate measures for desperate times.......
If the court rejects this next proposal, I can't see how they can possibly survive, so I hope for the sake of their employees they have some success.
Sadly, public confidence and those of travel agents goes down and down and that will not help their cause. My local travel agent already refuses to accept MYT bookings because he doesn't want to be left sorting out the mess for his customers IF it does all collapse.
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My Travel Rescue Plans Blocked
A High Court judge has blocked holiday firm MyTravel's rescue plan, raising fears the company could collapse.
The company had put forward a deal to restructure £800m ($1.47bn) of its debt through an equity swap that will leave bondholders with an 8% stake.
MyTravel's bondholders had rejected the deal and MyTravel had hoped to get court backing for its rescue plan.
MyTravel, whose brands include Airtours and Going Places, is due to present a revised plan to the court at 2pm.
Failed ambitions
MyTravel has offered the bondholders an 8% stake in the restructured company, with shareholders getting 4% and the rest - 88% - for its lenders.
The company, which raked up huge debts after an unsuccessful expansion drive, had earlier warned the bondholders that it may halve their stake to 4% if forced to seek permission for the scheme from the courts.
Its bondholders, including Fidelity, Societe Generale, Lehman Brothers, and New Star Asset Management, have argued that MyTravel does not have the legal right to take such action.
In addition to its failed expansion efforts, MyTravel was also hit by accountancy errors, and suffered heavily from the post-September 11 downturn in travel.
The slump left the firm with high costs and many unsold holidays, and despite efforts to cut expenses by shedding thousands of jobs and selling businesses its debt mountain has grown.
The company had put forward a deal to restructure £800m ($1.47bn) of its debt through an equity swap that will leave bondholders with an 8% stake.
MyTravel's bondholders had rejected the deal and MyTravel had hoped to get court backing for its rescue plan.
MyTravel, whose brands include Airtours and Going Places, is due to present a revised plan to the court at 2pm.
Failed ambitions
MyTravel has offered the bondholders an 8% stake in the restructured company, with shareholders getting 4% and the rest - 88% - for its lenders.
The company, which raked up huge debts after an unsuccessful expansion drive, had earlier warned the bondholders that it may halve their stake to 4% if forced to seek permission for the scheme from the courts.
Its bondholders, including Fidelity, Societe Generale, Lehman Brothers, and New Star Asset Management, have argued that MyTravel does not have the legal right to take such action.
In addition to its failed expansion efforts, MyTravel was also hit by accountancy errors, and suffered heavily from the post-September 11 downturn in travel.
The slump left the firm with high costs and many unsold holidays, and despite efforts to cut expenses by shedding thousands of jobs and selling businesses its debt mountain has grown.