(Reuters) - Travelex said on Tuesday its debt holders will take control of the company and inject 84 million pounds ($105.60 million) of fresh liquidity, as part of a debt restructuring to help the currency service provider ride out the coronavirus crisis.
The company said it reached an agreement with at least 66.7% of its senior secured noteholders and all of its revolving credit facility lenders for an 84% reduction of its existing financial debt.
The senior secured noteholders will take full control of Travelex, the company said.
The restructuring comes soon after London-based Travelex ended buyout talks, as the offers it received were “unacceptable” to its debt holders and lenders. The company put itself up for sale after parent Finablr (FINF.L) cautioned of a potential insolvency.
Travelex said the debt restructuring deal will also divide it into two parts, ‘New Travelex’ and ‘Warehouse Travelex’.
‘New Travelex’ will include the wholesale and outsourcing business, as well as some international retail businesses, while ‘Warehouse Travelex’ will mainly comprise of some of the company’s retail businesses in UK, Europe and North America.
The company’s revenue fell 36% to 111.9 million pounds, 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.
Reporting by Tanishaa Nadkar in Bengaluru; Editing by Shinjini Ganguli and Shounak Dasgupta