Travelex withdraws from sale process amid weak offers

https://www.mobilepaymentstoday.com/news/travelex-withraws-from-sale-process-amid-weak-offers/
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Travelex withdraws from sale process amid weak offers

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Travelex Holdings Ltd. said in a regulatory filing in London that it has withdrawn offers to sell the Travelex Group saying that offers made during the second round were considered unacceptable by RCF lenders and holders of senior secured notes.

Talks have continued between RCF lenders and an ad hoc group representing more than two-thirds of senior secured noteholders in connection with a new long-term, new money financial restructuring of Travelex Group. 

“Travelex is a global leader in foreign exchange services,” Tony D’Souza, CEO of Travelex said in the announcement.  “This forbearance agreement provides the stability required in order for lenders to finalize their discussions on a debt restructuring which we expect will recapitalize the group’s balance sheet and inject new capital into the business.”

While terms are being negotiated, a temporary forbearance deal from more than 70% of senior secured noteholders in connection with a 14.4 million euro ($16.2 million) interest coupon came due May 15.  

Travelex was hit by a ransomware attack at the end of 2019 and later was impacted by the COVID-19 pandemic that ground global travel and international business to a halt earlier this year.


Topics: Bank / Credit Union


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