Travelex Banknotes to appoint PwC as administrators

Maria Nikolova

The move marks the first of several steps in the implementation of Travelex’s proposed debt restructuring.

Travelex today announces that its subsidiary Travelex Banknotes Limited (TBL), has served a notice of intention to appoint PwC as administrators.

This marks the first of several steps in the implementation of its proposed debt restructuring announced on July 7, 2020. The notice of intention will be used to protect the assets of TBL for the benefit of the latter’s creditors while the division of corporate entities between Initial Fundco and Optional Fundco is completed as part of the group’s debt restructuring.

As FinanceFeeds reported on July 7, 2020, Travelex has reached an agreement with at least 66.7% of its Senior Secured Noteholders (SSNs) and all of its Revolving Credit Facility (RCF) lenders on the terms of a comprehensive debt restructuring.

The transaction will provide the company with £84 million of new liquidity and an 84% reduction of its existing financial debt. The SSNs, led by members of an Ad Hoc Committee of SSNs (the AHC), will take full control of Travelex. New money cash funding of £84 million will be provided by participating SSNs in the form of New Senior Secured Notes.

The AHC will provide an initial commitment through bridge funding of £15 million provided yesterday (to be refinanced by the New Senior Secured Notes), with upsizing flexibility for both the AHC and any participating SSNs wishing to subscribe. There will be full equitisation of the existing €360 million SSNs, and full reinstatement of the existing £50m RCF in the form of a Reinstated Term Loan and about £10 million guarantees in the form of reinstated guarantees (together, the “New RCF”).

SSNs will receive warrants over 17.5% of New Holdco equity at exit. Bridge Funding providers will receive further warrants of 2.5% of New Holdco Equity.

The transaction contemplates the division of the existing Travelex group into two parts:

  • Initial FundCo (“New Travelex”), which will comprise the wholesale and outsourcing business and certain international retail businesses of Travelex abroad (Brazil, Middle East & Turkey, Nigeria and Asia Pacific);
  • Optional FundCo (“Warehouse Travelex”), which will principally comprise certain of Travelex’s retail businesses in UK, Europe and North America.

Members of the AHC are expected to control over 50% of the equity of New Travelex.

Read this next

Digital Assets

OneCoin founder Ruja Ignatova is selling penthouse in UK

OneCoin founder Ruja Ignatova, who steered one of the world’s biggest cryptocurrency frauds, is back into the spotlight more than five years after vanishing from the public eye.

Digital Assets

Bitpay taps MoonPay to offer access to +60 cryptocurrencies

Crypto payment service provider Bitpay said it’s partnering with exchange and web3 infrastructure provider MoonPay to provide its users with easier access to buy cryptocurrency instantly.

Digital Assets

New York investigates Gemini over FDIC insurance claims

New York regulators are investigating Gemini over “false and misleading” claims the Winklevoss-owned exchange had made about whether client funds are insured by the government.

Digital Assets

Binance launches Mastercard-backed crypto card in Brazil

In partnership with Mastercard, crypto giant Binance is launching its pre-paid card offering cryptocurrency “rewards” on customers’ purchases.

Digital Assets

Circle publishes a breakdown of USDC reserves for December

Boston-based stablecoin issuer Circle has revealed a breakdown of its reserves for December 2022, as well as a complete list of USDC reserve custodians.

Retail FX

Monex reports lower revenues as crypto downturn bites

Monex Group has reported its Q3 2022 financial metrics, which saw a reversal in terms of its revenues as TradeStation was grappling with a crypto market crash that has tanked the profitability of its crypto business.

Inside View

Broadridge report finds 27% of firms’ overall IT budget goes to digital transformation

“A new chapter in digital transformation is emerging. In our work with clients across the financial services industry we see leading firms are already reaping the benefits from digitalization and the use of technologies such as AI and blockchain/DLT, as they adapt to economic headwinds and new competitive dynamics”

Executive Moves

Ripple announces Monica Long as President

“I’m incredibly honored to take on the role of President at Ripple as we expand deeper into crypto-enabled services like liquidity, settlement and custody.”

Executive Moves

Arabesque AI appoints Carolina Minio Paluello as CEO

“Arabesque AI is uniquely positioned to service the asset management industry’s need to meet the growing market demand for hyper customised portfolios.”

<