Friday 17 August 2012

UPDATE 1-RLPC-UK hotel chain Travelodge agrees debt restructuring | Reuters

UK budget hotel chain Travelodge agreed a 635 million pound ($999.6 million) debt restructuring that will give lenders control of the business but confirms a significant loss for its Dubai owners who bought the company in 2006.

The announcement comes after lending sources told Reuters in February that the group's lenders would assume control of Travelodge after it breached loan agreements in 2011.

Under the restructuring, debt will be reduced to 329 million pounds from 635 million and new cash totaling 75 million pounds will be injected into the business for major refurbishment work, the company said on Friday.

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