Will MY-TRAVEL go Bust ? (Merged)
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Will MY-TRAVEL go Bust ?
With all the articles in the press over the weekend ref MYT... are they likely to go bust..??
Answers on a post card please...
Answers on a post card please...
Last edited by thereceiver2004; 15th Nov 2004 at 15:33.
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The shares I have don't even make reasonable toilet paper.
Strange so many directors left with six figure settlements for NOT doing the job they were paid for.
This is our own 'food for oil' scandal.
Predictably it's the innocents that will suffer.
I bet they are still churning out the 'Do more with Less edicts too'.
Glad I'm not there, it's a terrible 'overhead' to work with when you're just trying to DO your job.
Edited for spelin agyn
Strange so many directors left with six figure settlements for NOT doing the job they were paid for.
This is our own 'food for oil' scandal.
Predictably it's the innocents that will suffer.
I bet they are still churning out the 'Do more with Less edicts too'.
Glad I'm not there, it's a terrible 'overhead' to work with when you're just trying to DO your job.
Edited for spelin agyn
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Careful thereceiver2004,
"MT" is the 2-letter code for Thomas Cook Airlines, who I suspect don't particularly want to be associated with MYT , otherwise known as MyTravel...
CM
p.s. As to an answer to your question, it's amazed me how MYT have carried on as they have for as long as they have...
"MT" is the 2-letter code for Thomas Cook Airlines, who I suspect don't particularly want to be associated with MYT , otherwise known as MyTravel...
CM
p.s. As to an answer to your question, it's amazed me how MYT have carried on as they have for as long as they have...
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MyTravel under threat to lose trading licence
Terry Macalister
Monday November 15, 2004
The Guardian
MyTravel, Britain's biggest tour operator, will admit for the first time today that it will lose its trading licence from the Civil Aviation Authority unless bondholders give consent to an £800m restructuring.
The danger of the regulator pulling the plug on flights and holidays will be contained in a circular sent to rebels such as fund manager Fidelity, which has opposed the rescue plan.
MyTravel has been in turmoil for almost two years since it warned of a £50m black hole in the accounts which eventually led to the exit of the founder and chairman, David Crossland and chief executive Tim Byrne.
MyTravel made a £365m loss in 2003, but last October announced a debt-for-equity plan it argues will put the company on a sound footing.
Bondholders have complained, however, that they have not been properly consulted on the terms of the deal, which would leave them with only 8% of the restructured business. A further 4% would be left with shareholders, while 88% would go to the creditor banks led by Royal Bank of Scotland.
MyTravel declined to comment last night on the publication date of the circular or any of its contents.
"The board believes - and has made clear since March - it is necessary to restructure the balance sheet," was all a spokeswoman for MyTravel was willing to say.
But well-placed sources confirmed the circular was ready to be distributed this morning and would warn about the threat from the CAA, which is poised to undertake an annual review of MyTravel.
The company, which offers holidays under a series of different names, hopes to head off any early intervention from the regulator by telling bondholders it will go to court if it does not have their irrevocable support by Wednesday. If necessary, MyTravel would make an application to the high court on November 18 and ask for a "scheme of arrangement" to be put in place.
Under this, the court would convene a meeting for shareholders and creditors where it would call them to vote on what amounts to an even more punitive ownership structure. This would leave bondholders with only 2% of the company, formerly known as Airtours.
Shares in MyTravel rose by more than 7% to 4p last Friday amid expectation that the bondholders would agree the offer - rather than seeing their potential holding diluted further.
Paradoxically the latest crisis comes as MyTravel has recovered some of its financial strength. This is partly because costs have been cut drastically through redundancies and the sale of certain business.
City analysts had been pencilling in operating losses of £100m for the 12 months to the end of September 2004.
But chief executive Peter McHugh said earlier in September he believed it would hit breakeven, helped by booming demand in Scandinavia for holidays in the sun after a wet domestic summer.
There was also an improvement in the British side of the business which has started to make profits after a tough start to the year.
Terry Macalister
Monday November 15, 2004
The Guardian
MyTravel, Britain's biggest tour operator, will admit for the first time today that it will lose its trading licence from the Civil Aviation Authority unless bondholders give consent to an £800m restructuring.
The danger of the regulator pulling the plug on flights and holidays will be contained in a circular sent to rebels such as fund manager Fidelity, which has opposed the rescue plan.
MyTravel has been in turmoil for almost two years since it warned of a £50m black hole in the accounts which eventually led to the exit of the founder and chairman, David Crossland and chief executive Tim Byrne.
MyTravel made a £365m loss in 2003, but last October announced a debt-for-equity plan it argues will put the company on a sound footing.
Bondholders have complained, however, that they have not been properly consulted on the terms of the deal, which would leave them with only 8% of the restructured business. A further 4% would be left with shareholders, while 88% would go to the creditor banks led by Royal Bank of Scotland.
MyTravel declined to comment last night on the publication date of the circular or any of its contents.
"The board believes - and has made clear since March - it is necessary to restructure the balance sheet," was all a spokeswoman for MyTravel was willing to say.
But well-placed sources confirmed the circular was ready to be distributed this morning and would warn about the threat from the CAA, which is poised to undertake an annual review of MyTravel.
The company, which offers holidays under a series of different names, hopes to head off any early intervention from the regulator by telling bondholders it will go to court if it does not have their irrevocable support by Wednesday. If necessary, MyTravel would make an application to the high court on November 18 and ask for a "scheme of arrangement" to be put in place.
Under this, the court would convene a meeting for shareholders and creditors where it would call them to vote on what amounts to an even more punitive ownership structure. This would leave bondholders with only 2% of the company, formerly known as Airtours.
Shares in MyTravel rose by more than 7% to 4p last Friday amid expectation that the bondholders would agree the offer - rather than seeing their potential holding diluted further.
Paradoxically the latest crisis comes as MyTravel has recovered some of its financial strength. This is partly because costs have been cut drastically through redundancies and the sale of certain business.
City analysts had been pencilling in operating losses of £100m for the 12 months to the end of September 2004.
But chief executive Peter McHugh said earlier in September he believed it would hit breakeven, helped by booming demand in Scandinavia for holidays in the sun after a wet domestic summer.
There was also an improvement in the British side of the business which has started to make profits after a tough start to the year.
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Been done to death this one, everyone in the airline business knows that MYT are in trouble and are doing their best to get out of the sh*t.
I'm sure we all know people working for them, so lets stop the rumour-mongering and hope they pull through it. Good luck MYT!!
I'm sure we all know people working for them, so lets stop the rumour-mongering and hope they pull through it. Good luck MYT!!
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Another victim of their own success, and far too rapid an expansion.
They were far better when they were the small Airtours of the 1980's, and exclusively used chartered BAC1-11's from Dan-Air Services to operate their holiday flights.
I remember well that they were the only tour operator of the era not to serve meals on their Dan-Air flights - only coffee and biscuits.
Anyway, now saddled with all that debt, a fleet of aircraft, cruiseships, hotels, islands and not a cent in the bank!
Bring back the days of Pendle Tours Inc.
(For that matter, bring back Dan Air too).
My heart goes out to EVERYONE at MYT. Let's hope that a miracle occurs and the company re-emerges to fight another day, but in a leaner, more manageable form. Good luck guys.
They were far better when they were the small Airtours of the 1980's, and exclusively used chartered BAC1-11's from Dan-Air Services to operate their holiday flights.
I remember well that they were the only tour operator of the era not to serve meals on their Dan-Air flights - only coffee and biscuits.
Anyway, now saddled with all that debt, a fleet of aircraft, cruiseships, hotels, islands and not a cent in the bank!
Bring back the days of Pendle Tours Inc.
(For that matter, bring back Dan Air too).
My heart goes out to EVERYONE at MYT. Let's hope that a miracle occurs and the company re-emerges to fight another day, but in a leaner, more manageable form. Good luck guys.
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If the bond holders hold out the answer is maybe but I don't think either the bond holders or share holders can or will block the banks and MYT at this stage. If they do then it's all over. I think MYT are playing hard ball with the bond holders to force the issue asap. A high risk stratergy perhaps!
I think we will still be here this time next year.
I think we will still be here this time next year.
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I agree with Fuel Crossfeed.
I work for one of MYT's biggest rivals, but none the less it would be horrible to see them go under.
Apart from our passions for aviation, we are all in this industry for one main thing £££££££££££££££££££ ! ! ! ! Most of the people I have met from MYT seem good guys!
They seem to be just about hanging in there at the moment, long may it continue!
I work for one of MYT's biggest rivals, but none the less it would be horrible to see them go under.
Apart from our passions for aviation, we are all in this industry for one main thing £££££££££££££££££££ ! ! ! ! Most of the people I have met from MYT seem good guys!
They seem to be just about hanging in there at the moment, long may it continue!
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Will MY-TRAVEL go Bust?
Simple answer............NO
Sure the bondholders will play merry hell but, faced with 8% or 2% of very little, 8 would seem better! Holding out would seem futile, is anyone that bitter to force MYT under?? I doubt it!
D_D, hope you've mellowed, you were as big a loss to MYT as that rot-box trijet when it finally gets shifted.
Rgds
The Moss
Sure the bondholders will play merry hell but, faced with 8% or 2% of very little, 8 would seem better! Holding out would seem futile, is anyone that bitter to force MYT under?? I doubt it!
D_D, hope you've mellowed, you were as big a loss to MYT as that rot-box trijet when it finally gets shifted.
Rgds
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you reap what you sow.
I treat my staff like cr4p, i've messed up and wasted 800 million of other peoples money, and all the poor people who trusted me tough, you've lost also...
still our management structure is so solid and we are number 1 that they must let us off and we'll continue as if nothing ever happened.
nuff said?
I treat my staff like cr4p, i've messed up and wasted 800 million of other peoples money, and all the poor people who trusted me tough, you've lost also...
still our management structure is so solid and we are number 1 that they must let us off and we'll continue as if nothing ever happened.
nuff said?
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Dadaposh
Grow up! It is not about letting MYT off! The question is simply have they re-built a business that will make money? Can the banks recover some or all of their investment? Ansewer YES! Therefore the company will survive but not for any emotional reasons. They will have had to prove the company is again viable.
Grow up! It is not about letting MYT off! The question is simply have they re-built a business that will make money? Can the banks recover some or all of their investment? Ansewer YES! Therefore the company will survive but not for any emotional reasons. They will have had to prove the company is again viable.
Last edited by spy; 16th Nov 2004 at 00:31.
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Ballymoss
oh please! Bitter? Bitterness doesnt put a company out of business. Its stupid management does, and also the harsh realities of the market place. How old are ya?
Its PURELY economical. If MYT have allowed themselves to get into this state I really do NOT believe in propping them up when there are other fitter companies out there.
Hope they go bust I really do, the market needs a sweep and clean and at the moment we dont need a company bleeding at the seems.
Jet
oh please! Bitter? Bitterness doesnt put a company out of business. Its stupid management does, and also the harsh realities of the market place. How old are ya?
Its PURELY economical. If MYT have allowed themselves to get into this state I really do NOT believe in propping them up when there are other fitter companies out there.
Hope they go bust I really do, the market needs a sweep and clean and at the moment we dont need a company bleeding at the seems.
Jet
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Lovejet
Really hope you fail your LPC/OPC, lose your medical and your house is taken from you by the banks! Your wife or husband runs off with the postman/woeman and the neighbours dog bites you in the arse!
All of the above sounds really childish and mean spireted don't you think? Sounds a bit like your post! Nice to know there are still warm kind folks like you still out there makes me feel all warm inside. Shame you don't live up to your name!
Really hope you fail your LPC/OPC, lose your medical and your house is taken from you by the banks! Your wife or husband runs off with the postman/woeman and the neighbours dog bites you in the arse!
All of the above sounds really childish and mean spireted don't you think? Sounds a bit like your post! Nice to know there are still warm kind folks like you still out there makes me feel all warm inside. Shame you don't live up to your name!
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loveJet, your profile says it all. "Future Airline Boss", bet you'll have quality people from all over the industry just falling over themselves to work for such a caring employer. 
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Well i suppose at least lovejet is being honest, probally not thinking of the far wider implications such as lower wages/no pay rises for everyone else, no training new folk as there will be a glut of rated and experienced people around and a door opening to many more two bit gash start ups that are far worse.
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LJ makes the assumption that only MYT Airways would be affected. Stacks of MYT summer charter capacity is farmed out to third party carriers (2 million seats last year rings a bell). Monarch, Air Europa, Spanair etc would all feel some heat if MYT PLC failed. The other MYT products like Tradewinds, Cresta and Bridge offer scheduled flights to the long haul destinations. Not sure how many seats are bought on BA etc by these sub divisions, but bet it is not to be sneezed at! The fall out would be felt by loads of subcontractors, from the handling agents to cleaners, caterers, spares suppliers, Hallmark cars and so on. No doubt he still "hopes they go bust". 