24 November 2004



MyTravel Group plc



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.



While the judge has ruled on a technical point that the scheme cannot go ahead
as it is currently formulated, the company will submit an alternative approach
to the Court this afternoon. The court has vindicated the company's decision to
pursue the scheme of arrangement.



The company expects it will shortly be able to proceed with implementation of
the scheme, which is designed to ensure the completion of its restructuring by
the end of the year.





Ends

BBCare saying that it is going back to the court at 1400.

Eh?

So which is true?

Don't the previous two post basically contradict each other...?!!

We will see at 1400 which is when it goes back to court, by the way the shares are trading up if you can read anything into that.

Fron the BBC.
MyTravel rescue deal to go ahead

A High Court judge has ruled that holiday firm MyTravel can restructure without bondholders' approval.
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 the court said that it blocked the deal on a technicality.

MyTravel, whose brands include Airtours and Going Places, is due to present a revised plan to the court at 2pm.


The shareholder meeting will be held in December and the restructuring will be in place by the end of the year, the company said.

763 Jock

I'm puzzled now...you say BBC report it has gone ahead, yet the Reuters Business site states that the judge threw it out of court, but will reconsider an alternative plan at 2pm....


:ugh:

From the horses mouth...

http://news.bbc.co.uk/1/hi/business/4037471.stm

It seems straight forward to me - looks as if the judge was forced to block Mytravel's request, but informed them that it was just on a technicality. Fortunately the technicality is easily remedied which is why they are going back to court so quickly for another go. No doubt all will become clear at some point after 2pm, but from the behaviour of the shares it would appear that the stock market sees it that way too.

This just in...........

Last Updated: Wednesday, 24 November, 2004, 13:46 GMT



MyTravel to rework rescue package

MyTravel can relax a bit if it cuts its debt burden
Holiday firm MyTravel is preparing its second visit to the High Court in a single day to try to get its rescue plan approved.
On Wednesday morning, a judge threw out its initial proposal on a technicality.

But he agreed with the firm that it does not have to give bondholders - who oppose the plan to restructure £800m ($1.47bn) of its debt - a vote.

The firm, whose brands include Airtours and Going Places, is due to present a revised plan to the court at 1400.

It wants to restructure £800m of its debt through an equity swap, which will leave the bondholders with an 8% stake.

A shareholder meeting will be held in December and the restructuring will be in place by the end of the year, the company said.

"The court has vindicated the company's decision to pursue the scheme of arrangement," the company said.

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.

So that's it then. MyTravel lives on, so was it such a big deal after all? I doubt they would have gone to the High Court unless they thought they'd win. So shall we close the debate and come back in 6 months time and see how they're doing? (withdraws under the onslaught of further posts)

And now the result please..........

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?"

FT indicating that MyTravel will be able to proceed with Resue plan
 

"MyTravel was expected to proceed with an £800m ($1.5bn) debt-for-equity swap after a UK court ruled on Wednesday that bondholders would not have an economic interest in the tour operator formerly known as Airtours if it were to go into liquidation.

In his ruling judge Justice Mann said the company can restructure its debt without the approval of bondholders. But Mr Mann rejected the proposed scheme of arrangement on a technicality and gave MyTravel the opportunity to present a new scheme later on Wednesday."

FT On line

Clearly indicating that they will be able to proceed with a resubmitted plan, as per Curious Pax's posting

Court allows MyTravel to exclude bondholders
Wed 24 November, 2004 15:38
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LONDON, Nov 24 (Reuters) - The London High Court said on Wednesday that MyTravel MT.L could exclude holders of 216 million pounds of bonds from its restructuring, reversing an decision earlier in the day after new evidence from the company.

UK leisure firm MyTravel, formerly Airtours, has been battling with its bondholders over how much of its equity each of its creditors get in a 800 million pounds ($1.49 billion) debt-for-equity swap.

The decision clears the company to proceed with its debt swap, which the bondholders had opposed.

Webmaster,

Please can we change the erroneuos title of this thread!!

(PS. Get in there you beauty! Another step closer to proving a lot of people wrong!!!)

YEEEEEEEEEEEEEEEE
HAAAAAAAAAAAAAAAA !!!!!!!!!!!


Webmaster as above, please change the TOPIC TITLE.
Thanks.

MyTravel rescue package approved

MyTravel can relax a bit if it cuts its debt burden
Holiday firm MyTravel has won High Court approval for a rescue plan which bondholders had tried to block.
The London High Court said on Wednesday MyTravel could exclude bondholders from its plans to restructure £800m ($1.47bn) of its debt.

Bondholders oppose the firm\'s plan for an equity swap, which would leave them with an 8% stake.

Mytravel returns to court on 20 December to have the restructuring scheme finalised.


THE BBC

Yes it is good news......but this part of the "big picture" was unlikely to be the real problem.

The big question is " will the companies now be asset stripped and sold off so the financial houses can start to get some money back" If that is the case....will anything be left at the end ?

Look forward to seeing who the banks put in charge.......

Perhaps the end of the begining insted of the begining of the end ?

waco, they haven't got any assets. The banks are hoping for a turnaround, which the company is doing, and when the share price rises they make a killing. My travel has gone from making a loss to breaking even this year, with a projected profit next year. When it makes a profit,the share price goes up. The banks see a potential for making the money on the shares.

I would second that Brabazon, but I would like to ask one question first. The judge ruled that the plan could not proceed due to a technicality. If the bond holders had not taken this issue to the High Court and the plan had been implemented with the technicality in place, would the entire restructure have been nul and void?

im slowly beginning to see the picture...lol. the banks will make a killing when the share prce rises... i spose it only has to go up from say 4p to 8p and i take it they have doubled their money if this is how it works.

so now i wonder... where is mytravel getting its working capital from and now the company will be owned by the banks etc.... as they will have full control.... does this mean that once they have got their money plus a bit more....they will sell or walk away loaded.

do these people also get a slice of profits or are they relying on gaining their money from the rise of shares.

hope someone can help

cheers

tj747