Travelex not to pay upcoming coupon payment of €14.4m

Maria Nikolova

Travelex no longer intends to pay the upcoming coupon payment of €14,400,000 due on May 15, 2020 in respect of the Senior Secured Notes.

Travelex Financing Plc today issued an update for all stakeholders of Travelex Holdings Limited and its subsidiaries on the status of the business and the steps being taken to address the current situation.

Travelex says that, given the spread of Covid-19, the company continues to face a challenging environment which includes the ongoing disruption to global travel and the continued closure of Travelex’s foreign exchange bureaux globally.

As a result of these circumstances and the material negative impact on 2020 results, Travelex Financing Plc no longer intends to pay the upcoming coupon payment of €14,400,000 due on 15 May 2020 in respect of the Senior Secured Notes. TheTravelex Group is intending to use its grace periods to seek appropriate waiver and/or forbearance arrangements from its Noteholders.

In the meantime, Travelex says discussions continue on a long term solution for the group with certain of its lenders and their advisers, and with certain bondholders representing more than 66% of the outstanding face value of the Senior Secured Notes and their advisers. Travelx is also actively seeking offers for the Travelex Group from interested bidders.

As FinanceFeeds has reported, in April 2020, Travelex announced that, as part of its continuing assessment of strategic options to maximise value for its stakeholders, the Board of Travelex Holdings Limited decided to seek offers for the Travelex group.

Parties with a potential interest in making a proposal should contact PwC in order to enter into a customary non-disclosure agreement, following which they will receive certain information on the Travelex group, and will be invited to submit their indicative proposals to PwC on that basis.

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