This travel agency joins Hertz and Worldstrides in taking this route to weather financial storms caused by the pandemic.
Corporate travel agency CWT stated that it plans to file a pre-packaged Chapter 11 in the U.S. for a $1.5 billion refinance deal.
It has also proposed a restructuring agreement to creditors in order to get rid of $900 million worth of debt.
Chapter 11 is a type of bankruptcy that involves the reorganization and liquidation of debtors' business assets, debts, and assets. It has been used by many travel companies to weather difficult pandemic-related trading conditions.
While we operate normally, we will use a pre-packaged, court-supervised process to quickly implement the agreement in the next weeks. A spokesperson for CWT stated that they look forward to moving forward as a fundamentally stronger organization.
This is the latest news from a string of bankruptcy filings and travel restructurings.
Hertz, a car rental company, filed for Chapter 11 bankruptcy protection May 2020. Hertz was able to exit in June after having worked with Certares Management, Knighthead Capital Management, and other co-sponsors.
U.S. education travel company WorldStrides filed Chapter 11 bankruptcy protection in July 2013. It emerged from Chapter 11 bankruptcy protection in October.
Airliner protection has also been granted to those flying in Latin America, especially AeroMexico and LATAM.
CWT is moving forward with the implementation of our previously announced agreement, which was reached with our financial partners. This will greatly strengthen our financial position, increase liquidity, and reduce our debt by approximately 50%, the spokesperson stated. Our financial stakeholders, which include 100 percent of our bank group as well as holders of more than 90 percent of our secured debt, have already overwhelmingly supported the agreement.
Skift asked the agency when it would expect to end bankruptcy protection. The agency didn't respond. According to reports, the process is expected to be completed by the end this month.
Skift CEO McKinney Frymire stated that the agreement had over 90% of debt holders. This was a testament to the support financial stakeholders gave the company.
