Dubai is bracing itself for a hefty £400m loss as Travelodge, the debt-laden hotel group it bought near the top of the market, finalises a bailout that would obliterate its investment in the company.
The New York hedge funds, Avenue Capital and Gold Tree Asset Management, will seize control of Travelodge in a "debt-for-equity" swap that will leave its creditors in control of the business.
The pair have agreed to underwrite a key £60m loan that will tide Travelodge over for a few weeks, while the details of a larger restructuring of the company's debts are hammered out.
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