Monday 20 February 2012

CPI Financial | News | Is Travelodge edging towards bankruptcy?

Dow Jones is reporting that Travelodge (which was bought by Dubai International Capital) is close to falling into the hands of its creditors as the hotel chain struggles to sort out its huge debt pile. The newswire reports that the debt pile is over GBP 400 million ($634 million) and that current negotiations focus on a GBP60 million medium-term loan facility that requires refinancing immediately.
However, the hotel chain has denied that it is filing for bankruptcy.
“All the lenders are working together to find a sensible solution to the debt structure,” James Leviton, a spokesman for Travelodge, told Bloomberg. “Travelodge is not going into administration.” The hotel chain issued the denial after the Sunday Times newspaper in the UK reported that the chain was weeks away from going under.

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