Travelodge burns landlords not lenders

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By Owen Sanderson
04 Jun 2020

Travelodge has opted to restructure its debts through a CVA rather than using the UK’s new restructuring framework, shortly to become law. That means landlords are likely to be the losers, rather than bondholders.

The UK’s new insolvency act allows, for the first time, the cramdown of dissenting creditor classes — potentially including secured creditors — paving the way for “significantly more contested hearings and legal challenges than has historically been seen in schemes of arrangement”, according to Allen & Overy.

It has ...

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