MyTravel finally in the clear.
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MyTravel finally in the clear.
As reported on BBC 1 this morning (29/12/04), MyTravel is now in very strong financial shape, having written off £800 million of debts. So much for all the doom-sayers and their incorrect predictions over the past 2 years.
Mind you, the UK airline (MyTravel Airways) has shed too many experienced crew, at the behest of the banks. Now that the numbers are good financially, the airline is short of aircrew. So we move from from News to Rumours.
CTC are understood to be involved in sourcing new low-hours aircrew, starting Feb 05. The plan is allegedly to have trained people ready for the summer season. Meanwhile disenchanted experienced pilots continue to leave in droves, to the likes of Air Atlanta, Virgin, BA, easyJet, Thomas Cook, and probably Monarch in the near future. A handful have even resigned to move to Etihad, in Abu Dhabi, which truly smacks of desperation.
Mind you, the UK airline (MyTravel Airways) has shed too many experienced crew, at the behest of the banks. Now that the numbers are good financially, the airline is short of aircrew. So we move from from News to Rumours.
CTC are understood to be involved in sourcing new low-hours aircrew, starting Feb 05. The plan is allegedly to have trained people ready for the summer season. Meanwhile disenchanted experienced pilots continue to leave in droves, to the likes of Air Atlanta, Virgin, BA, easyJet, Thomas Cook, and probably Monarch in the near future. A handful have even resigned to move to Etihad, in Abu Dhabi, which truly smacks of desperation.
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I wish MYT the very best of luck as I know many people employed there but you cannot escape the fact that the groups present situation is due to extraordinarily zealous expansion that left it with massive excess capacity.
RoyHudd - I'm afraid the doomsayers were very nearly correct and if it weren't for strongarm tactics in the courts they would have been proved completely right. Its time for MYT to be a little less bullish and to start concentrating on getting their product right.
Cod
RoyHudd - I'm afraid the doomsayers were very nearly correct and if it weren't for strongarm tactics in the courts they would have been proved completely right. Its time for MYT to be a little less bullish and to start concentrating on getting their product right.
Cod
Strong financial shape ? As far as I understand it the banks wrote off the debt in the hope that the Company might get its act together and they would see a long-term return; the other option was to withdraw all support and get damn all back for their investment when what few assets remain were sold off. All that being said I echo Codmans sentiments - it is not in the interests of the UK pilot body to see MYT go bust, another flood of redundant pilots only reduces the negotiating position for all other competitor airlines.
As Peter Long said the other day - MYT have been to hell and back BUT they should survive - whether as a corporate body they deserve to is another matter.........nonetheless good wishes to the employees of MYT, I hope that 2005 does see your fortunes improve.
As Peter Long said the other day - MYT have been to hell and back BUT they should survive - whether as a corporate body they deserve to is another matter.........nonetheless good wishes to the employees of MYT, I hope that 2005 does see your fortunes improve.
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The 'debt' hasn't been written off, as such. It has been converted into an equity share of the 'new' MyTravel Holdings. The reason that the banks have agreed to do this, is that they will now hold a much higher percentage of the new company than they would have otherwise. That is the reason that the current bond holders were kicking up such a fuss, as originally the bond holders were only offered 2% of the new company. The share offered to them has now been increased to 8%, which is why the court ruling was not actually needed on the 20th of December.
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johnwalton: the bond holders were only offered 2% of the new company
Codman: if it weren't for strongarm tactics in the courts
Last edited by U/S President; 30th Dec 2004 at 21:07.
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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:
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.
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.
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It's all over, those who claimed to know we would fail were wrong! Granted we are lucky to be here but the fact is we are so to those who were so keen to see MYT fail, live with it and go and find another subject to give us your expert opinions on.
As to MYT being in a strong financial position I think that is arguable! But we have little or no debt and a very clean balance sheet, how many can say that?
The Bond Holders played hardball and in the end both sides got what they wanted. For the Bond Holders it was important not to be seen to lose in court they escapted by going back to the table and talking. So alls well that ends well!
Happy New Year even to those who have been so full of doom and bull for the last two years! The events of the last week put it all in perspective! The last two years seem very unimportant by comparison!
As to MYT being in a strong financial position I think that is arguable! But we have little or no debt and a very clean balance sheet, how many can say that?
The Bond Holders played hardball and in the end both sides got what they wanted. For the Bond Holders it was important not to be seen to lose in court they escapted by going back to the table and talking. So alls well that ends well!
Happy New Year even to those who have been so full of doom and bull for the last two years! The events of the last week put it all in perspective! The last two years seem very unimportant by comparison!
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The bond holders would much rather have the money that they lent to MYT repaid on the due dates with interest as per the original contract.
The bond holders have lost the money loaned, and now they find they have little bits of paper saying they own a small part of a company with questionable value.
The bond holders have lost the money loaned, and now they find they have little bits of paper saying they own a small part of a company with questionable value.
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I know that I have upset many with my previous posts on this subject, but cotrary to common belief, I do not wish ill on the crews of MyTravel.
In my time in this industry I have seen the crews of Court Line/Laker/Air Europe/Dan Air/ And many others go to the wall for the sake of inept management or ruthless business practise.
If only they had half the chances that you have had in MyTravel to get things right, and still screwed up over three years, then they would still be in a job, and you would all have been in other companies.
We don't fly as a brotherhood in the UK charter airline industry, we fly to win and survive, and right now MyTravel have won a right to survive that they don't deserve.
I don't write this as personal vitriol to any persons in MyTravel. I write it because I feel angry that because it suited St Tony (Blair) to keep you in business, you are still going when you shoudn't be.
I am sure that those left in the company will now go on to prosper and survive well, and so you should. Loyalty on your scale should be rewarded. But spare a thought for those that have bolted to the life boats thinking that they have just met the iceberg, when in fact the MyTravel boat missed it. Their careers may never recover.
For the inclusive tour company's to make money in the next ten years requires at least one major player to dissapear. Sadly it wasn't MyTravel.
And don't bother writing vitriolic replies on a personal level, because I won't reply.
In my time in this industry I have seen the crews of Court Line/Laker/Air Europe/Dan Air/ And many others go to the wall for the sake of inept management or ruthless business practise.
If only they had half the chances that you have had in MyTravel to get things right, and still screwed up over three years, then they would still be in a job, and you would all have been in other companies.
We don't fly as a brotherhood in the UK charter airline industry, we fly to win and survive, and right now MyTravel have won a right to survive that they don't deserve.
I don't write this as personal vitriol to any persons in MyTravel. I write it because I feel angry that because it suited St Tony (Blair) to keep you in business, you are still going when you shoudn't be.
I am sure that those left in the company will now go on to prosper and survive well, and so you should. Loyalty on your scale should be rewarded. But spare a thought for those that have bolted to the life boats thinking that they have just met the iceberg, when in fact the MyTravel boat missed it. Their careers may never recover.
For the inclusive tour company's to make money in the next ten years requires at least one major player to dissapear. Sadly it wasn't MyTravel.
And don't bother writing vitriolic replies on a personal level, because I won't reply.
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All credit to the management of My Travel for navigating through a horrendous minefield. But please remember that the banks have only gone as far as they have because they think it is a way of getting their money back. That leaves My Travel vulnerable to a takeover. As soon as there is a decent offer the banks will accept it. Just wait and see. It could only be a matter of months, weeks even.
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As I said before Happy New Year!
Some of you really should learn how to lose more gracefully!
I don't think there is a Tour Operator stupid enough to make a take over bid at this time for MYT and even fewer with enough money or support from their Banks to do so. As has already been pointed out MYT has very little in the way of assets! It would prove a very expensive move, after all the Banks want £800 million or as close as they can get. MYT has already proved you can get into a lot of touble just buying companies to increase your share of the market! If there is a company stupid enough to try it, they will very soon run into the same problems MYT did!
And would you boys and girls stop putting this on Tony. MYT is here because it faught tooth and nail to survive! What saved it was the size of the debt and a good team at the top who sorted out the mess left by our previouse board, some of whom are now working for a company near you!
Albert
Get a life old son, I too have worked for other operators that have failed and had my career set back as have many others at MYT and else where. It is the way of the world, instead of being sorry for yourself because MYT have survived when others have not, how about trying to look on the bright side, there is some good news this Christmas, 16000 people get to keep their jobs!
All this rubbish about MYT does not deserve to survive proves only how many fail to grasp the reality of the modern world. It is not about who deserves or earns the right to survive, it is about who is willing to fight to survive and use any and all means to make money, that is the truth about our industry and world we live in. It has nothing to do with being fair! The Banks were not prepared to kiss goodbye to that amount of money!
Whilst you may not care what happens to your fellow pilots others do. Those who have left MYT for pastures new will do well and did so for their own reasons, good luck to them some have done a lot better for themselves, so don't feel sorry for them try being happy! Being bitter and twisted because MYT made it and others did not will just give you high blood pressure!
:ok
Some of you really should learn how to lose more gracefully!
I don't think there is a Tour Operator stupid enough to make a take over bid at this time for MYT and even fewer with enough money or support from their Banks to do so. As has already been pointed out MYT has very little in the way of assets! It would prove a very expensive move, after all the Banks want £800 million or as close as they can get. MYT has already proved you can get into a lot of touble just buying companies to increase your share of the market! If there is a company stupid enough to try it, they will very soon run into the same problems MYT did!
And would you boys and girls stop putting this on Tony. MYT is here because it faught tooth and nail to survive! What saved it was the size of the debt and a good team at the top who sorted out the mess left by our previouse board, some of whom are now working for a company near you!
Albert
Get a life old son, I too have worked for other operators that have failed and had my career set back as have many others at MYT and else where. It is the way of the world, instead of being sorry for yourself because MYT have survived when others have not, how about trying to look on the bright side, there is some good news this Christmas, 16000 people get to keep their jobs!
All this rubbish about MYT does not deserve to survive proves only how many fail to grasp the reality of the modern world. It is not about who deserves or earns the right to survive, it is about who is willing to fight to survive and use any and all means to make money, that is the truth about our industry and world we live in. It has nothing to do with being fair! The Banks were not prepared to kiss goodbye to that amount of money!
Whilst you may not care what happens to your fellow pilots others do. Those who have left MYT for pastures new will do well and did so for their own reasons, good luck to them some have done a lot better for themselves, so don't feel sorry for them try being happy! Being bitter and twisted because MYT made it and others did not will just give you high blood pressure!
:ok
Last edited by spy; 31st Dec 2004 at 10:37.
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Alberts Growbagright: “now MyTravel have won a right to survive that they don't deserve”
MyTravel has got the chance to survive because the banks did their financially pragmatic assessment and decided they stood to gain more by taking 88% of the company than by having it wound up and picking over the remains. I don’t see how this is ‘undeserved’ or ‘deserved’ - it’s just the reality of how the banks saw it.
Alberts Growbagright: “it suited St Tony (Blair) to keep you in business”
As for the Daily Mail-fuelled rumour that the Government interfered with the CAA’s assessments of MyTravel’s finances, get over it. The regular meetings between the CAA and MyTravel also included the most important parties in this: the banks. The CAA was content to let MyTravel continue trading, whilst it sorted out it finances, only because the banks supported the process 100%. No amount of pressure from Tony Blair (and I personally don’t believe he tried to exert any) would have been enough if MyTravel hadn’t had the financial backing of its lenders and met the targets the banks were setting. Don’t let the fact that you’re anti-Blair cloud the facts.
Alberts Growbagright: “spare a thought for those that have bolted to the life boats”
Those that deserted MyTravel presumably left for other jobs, not to live on the streets. If they voluntarily left for worse jobs, because they thought MyTravel was going under, then I guess it didn’t work out the way they anticipated - but they not exactly hard-done-by compared to those who stayed and helped and were then made redundant.
MyTravel has got the chance to survive because the banks did their financially pragmatic assessment and decided they stood to gain more by taking 88% of the company than by having it wound up and picking over the remains. I don’t see how this is ‘undeserved’ or ‘deserved’ - it’s just the reality of how the banks saw it.
Alberts Growbagright: “it suited St Tony (Blair) to keep you in business”
As for the Daily Mail-fuelled rumour that the Government interfered with the CAA’s assessments of MyTravel’s finances, get over it. The regular meetings between the CAA and MyTravel also included the most important parties in this: the banks. The CAA was content to let MyTravel continue trading, whilst it sorted out it finances, only because the banks supported the process 100%. No amount of pressure from Tony Blair (and I personally don’t believe he tried to exert any) would have been enough if MyTravel hadn’t had the financial backing of its lenders and met the targets the banks were setting. Don’t let the fact that you’re anti-Blair cloud the facts.
Alberts Growbagright: “spare a thought for those that have bolted to the life boats”
Those that deserted MyTravel presumably left for other jobs, not to live on the streets. If they voluntarily left for worse jobs, because they thought MyTravel was going under, then I guess it didn’t work out the way they anticipated - but they not exactly hard-done-by compared to those who stayed and helped and were then made redundant.
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SPY.
You are correct that it was the banks that saved My Travel, in trying to recoup as much of their money as possible.
However the main reason it is still in business, is that the CAA did not pull its bond as may be it should have done, when its assets fell below the bonds criteria.
This may be where people talk of Tony becoming involved.
However as I understand it, many more outfits including the big boys also do not reach the bond criteria. This could be one reason why the whole bonding issue is going to be changed in the near future.
Just to add a point about the My Travel bond holders, the 8% was offered to the holders again, on the condition that they withdrew their threat to sue the directors of My Travel at a later date, this was granted by the high court during their battle with the board. So was this deal a better deal for the company as a whole, or for the directors, as forcing through 2% or even 4% I would have thought, would have been better for the company.
You are correct that it was the banks that saved My Travel, in trying to recoup as much of their money as possible.
However the main reason it is still in business, is that the CAA did not pull its bond as may be it should have done, when its assets fell below the bonds criteria.
This may be where people talk of Tony becoming involved.
However as I understand it, many more outfits including the big boys also do not reach the bond criteria. This could be one reason why the whole bonding issue is going to be changed in the near future.
Just to add a point about the My Travel bond holders, the 8% was offered to the holders again, on the condition that they withdrew their threat to sue the directors of My Travel at a later date, this was granted by the high court during their battle with the board. So was this deal a better deal for the company as a whole, or for the directors, as forcing through 2% or even 4% I would have thought, would have been better for the company.
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Good luck (sincerely) to those still employed at MYT but I clearly remember the 'cloud' I and many others worked under, at least twice, during failed take-over bids by AIH and I offer this post as an explanaition for some residual bad feeling today.
The obnoxiuos, insensitive attitude displayed by many AIH staff coupled with the extraordinarily personal 'war' waged by senior board members then, sticks in the mind. So forgive some of us who found the corners of our mouths curling into an involuntary smile when the extent of MYT's problems became apparent following their gargantuan grab for market share.
Perhaps we are guilty of a bout of schadenfreude but what goes around most definately comes around chaps.
Happy New Year
Cod
The obnoxiuos, insensitive attitude displayed by many AIH staff coupled with the extraordinarily personal 'war' waged by senior board members then, sticks in the mind. So forgive some of us who found the corners of our mouths curling into an involuntary smile when the extent of MYT's problems became apparent following their gargantuan grab for market share.
Perhaps we are guilty of a bout of schadenfreude but what goes around most definately comes around chaps.
Happy New Year
Cod
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Spotty
The CAA as far as I know have never pulled the bond on an operator that has had the full backing of it's Banks. The CAA is a private company at the end of the day and if it pulled a bond from a company that was supported by it's banks they would soon find themselves on the wrong end a law suit.
You are correct almost none of the UK operators meet the bond requirements, which proves the point. Had the banks not been fully behind MYT then the CAA would have acted.
The CAA as far as I know have never pulled the bond on an operator that has had the full backing of it's Banks. The CAA is a private company at the end of the day and if it pulled a bond from a company that was supported by it's banks they would soon find themselves on the wrong end a law suit.
You are correct almost none of the UK operators meet the bond requirements, which proves the point. Had the banks not been fully behind MYT then the CAA would have acted.
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Good to see that my travel is back on form. Does anyone know what is happening with all there flt deck that have been made f/o recently. and have had major pay cuts. life such a b***h. . .
