Travelzest granted another loan extension by Barclays

Travelzest granted another loan extension by Barclays

Barclays has agreed to a further deferral of a capital repayment from Travelzest while the travel group continues talks with banks in the UK and Canadian markets to identify the best commercial terms.

Travelzest also confirmed that it is still in discussions in relation to a potential offer first disclosed in April but “there can be no certainty that the talks will result in an offer being made for the company”.

“The terms of the proposed new facility are expected to be more favourable than those of the existing facility,” Travelzest said.

Under the existing facility provided by Barclays dated June 19, 2008, a capital repayment of £620,550 and C$2,668,557 and associated interest became due on May 31, 2011.

The company said that Barclays has agreed to a further deferral of the capital repayment and to a further waiver from certain covenants until July 29. This follows an initial extension to June 30.

“Discussions with one bank continue to progress. The terms of the proposed new facility are expected to be more favourable to the company than those of the existing facility,” Travelzest said.

Travelzest owns a number of specialist tour operators including the naturist operator Peng Travel. It has recently restrucured its business in the UK consolidating its operations into one head office and made a number of redundancies.

Although its UK business has been hit by the challenging economic conditions Travelzest's interests in Canada, including online retailer itravel2000, have fared a lot better.

Comments

This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.

More in News