MyTravel to sue EC for damages of £518m
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MyTravel to sue EC for damages of £518m
http://news.bbc.co.uk/1/hi/business/3006030.stm
However, BBC up to their usual laxity. First paragraph at time of posting states -
. I expect they will change this when someone tells them, not me!
However, BBC up to their usual laxity. First paragraph at time of posting states -
Struggling tour operator First Choice is demanding a multi-million pound payment from the European Commission in compensation for blocking its takeover of rival travel firm First Choice.
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Freeway, I think you will find that MyTravel intended to bring this case as along ago as June 2002, when the European Court of First Instance(CFI) annulled the September 1999 decision of the European Commission, preventing the takeover of First Choice.
Understandably, it was not top of their action list during their problems of recent months, but they have now managed to find the time to initiate action.
I wish them well!
Understandably, it was not top of their action list during their problems of recent months, but they have now managed to find the time to initiate action.
I wish them well!
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Freeway keep up with events! newswatcher is spot on. As always where MYT is concerned we can't have a bit of good news without the little twist of the knife! But that's life.
Still has to be said the money would come in handy!
Still has to be said the money would come in handy!
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Call me cynical, but I can't really see the suits at the EC saying, "We're really sorry lads, and here's half a billion quid to prove it."
Any action could take years to conclude and is unlikely to bolster the company's cash reserves in the near future. My man at Deutsche Bank can't figure out where the claim value stems from and reckoned that even a successful case would result in a payout far lower than the reported £518m suit. Still.. it's only one opinion.
The cost of failure.... hmmm.... I really have no idea what the cost is to bring an action like this, but it has to be substantial.
It's a wait-and-see on this one - what's more important is the new management persuading the convertible bond-holders that they really don't want to cash in at a loss. Fail in this, and it really is 'Game Over.'
Any action could take years to conclude and is unlikely to bolster the company's cash reserves in the near future. My man at Deutsche Bank can't figure out where the claim value stems from and reckoned that even a successful case would result in a payout far lower than the reported £518m suit. Still.. it's only one opinion.
The cost of failure.... hmmm.... I really have no idea what the cost is to bring an action like this, but it has to be substantial.
It's a wait-and-see on this one - what's more important is the new management persuading the convertible bond-holders that they really don't want to cash in at a loss. Fail in this, and it really is 'Game Over.'
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Don't see anything new here. This legal action has been on the cards since Europe ruled that the takeover was unfairly blocked. As for using it as a desperate attempt to get money..well only a halfwit would come up with that conclusion. The process will undoubtedly take years. As Mytravel spent considerable millions setting up the deal in the first place, why shouldn't they claim compensation? Courts have ruled that they were shafted, after all.
As for the bondholders..well its true if they bail out then the games up. The chances of that are extremely small. They will strike a deal but they're unlikely to give in easily. They will want to extract several pounds of flesh in retaliation for recent events. So it's bad news for those out there that were waiting to gloat at the demise of Mytravel. Thousands of staff retain their jobs and pay their mortgages. In the fullness of time it may even turn out to be the fine place to work that it once was. I have a suspicion however that those good days are lost forever.
As for the bondholders..well its true if they bail out then the games up. The chances of that are extremely small. They will strike a deal but they're unlikely to give in easily. They will want to extract several pounds of flesh in retaliation for recent events. So it's bad news for those out there that were waiting to gloat at the demise of Mytravel. Thousands of staff retain their jobs and pay their mortgages. In the fullness of time it may even turn out to be the fine place to work that it once was. I have a suspicion however that those good days are lost forever.
