Friday 12 June 2020 11:54 am

Travelex set for restructuring after auction process halted

Debt investors in embattled foreign exchange provider Travelex are pushing the firm’s banks to negotiate a restructuring deal.

Sky News reported that after an auction process stalled, bondholders represented by investment bank PJT Partners are pushing banks including Barclays and Goldman Sachs to enter negotiations.

Read more: Travelex owner Finablr announces new boss as finance chief quits

Travelex’s banks are owed about £90m by the company, while investors are awaiting repayments worth up to £322m.

Earlier this year the forex company was devastated by a cyber attack in which hackers held the firm to ransom for over two weeks.

The damage from the attack was compounded by the onset of the coronavirus crisis, which saw Travelex shut all of its outlets for eight weeks as international travel all but totally dried up.

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The new 14-day quarantine rules has furthered dampened hopes of a swift recovery for the industry.

Last weekend it was reported that a number of firms had made offers for Travelex, including private equity firm Marlin Equity.

However, one lender told Sky that none of the offers could be completed within the appropriate timescale, leaving a restructuring the most likely outcome.

In March Travelex’s owner Finablr warned that it was preparing for potential insolvency, leading to the firm’s shares being suspended.

Read more: EY resigns as auditor of Travelex owner Finablr as board members quit

It had also discovered $100m (£81m) in undisclosed cheques made before its float in 2018 that may have been used as security for financing arrangements for the benefit of third parties. It has launched an investigation into its finances.

A number of Finablr’s board members, including its finance chief, quit the firm, as did auditor EY.