Travelodge has improved an offer to landlords ahead of a vote this Friday to settle rent payments . In a bitter ongoing dispute between Travelodge and landlords the hotel company has made a number of concessions in a bid to try and win over angry property-owners.
The latest episode in the saga was reported by Mark Kleinman, City editor at Sky News.
Many of the landlords came together and formed an action group, claiming they were being forced to shoulder the burden of a financial restructuring being undertaken by Travelodge because of the Covid-19 crisis. Travelodge is planning to place itself into a Company Voluntary Arrangement and as such needs support from creditors, including landlords.
Travelodge relinquish shareholder rights
Travelodge are understood to have pledged that shareholders would not be able to take money out of the company until landlords had been fully repaid. There is no news of a shareholder meeting to approve such an offer, and if the move was backed unanimously. The offer would seem advantageous in the deal trying to be agreed from the landlord’s perspective. If all shareholders in Travelodge are happy remains to be seen.
UK hotel group Travelodge is owned by Anchor Holdings based in Luxembourg, major investors are US investment banks and offshore hedge funds.
Travelodge relinquish shareholder rights – 17 June 2020