Embattled foreign exchange firm Travelex has announced that its debtholders will take control of the company after injecting £84m to help it weather the coronavirus crisis.
Travelex said it has reached an agreement with 66.7 per cent of its senior secured noteholders (SSN) and all of its revolving credit facility lenders on the terms of the debt restructuring.
The debtholders will provide £84m of new liquidity and an 84 per cent reduction in Travelex’s financial debt, with the SSN’s taking full control of the company.
The deal will see the company split into two divisions.
New Travelex will include the wholesale and outsourcing business as well as retail arms in Brazil, the Middle East and Turkey, Nigeria and Asia Pacific.
Meanwhile Warehouse Travelex will include the company’s retail businesses in the UK, Europe and North America.
The company’s revenue fell 36 per cent to £111.9m, for the three months ended March 31, mainly due to a cyber attack which forced it to take all its systems offline, as well as the coronavirus pandemic’s impact on global travel and forex demand.
Travelex chief executive Tony D’Souza said: “This agreement marks a significant and positive milestone in the strategic initiatives which the Company has pursued over recent months.
“The restructuring will provide Travelex with a stable platform through £84m of new liquidity and a substantial debt reduction, so that it can rebuild revenues under the stewardship of its new shareholders.
“I want to thank again all of Travelex’s employees who have continued to work tirelessly through this challenging period. I am also grateful to our secured lenders and all of our stakeholders for their continued support as we reach this milestone and look forward to the successful completion of the transaction.”