Travelex, the airport foreign currency group, is to split in two after its lenders agreed to £84mln in new funding as part of a debt restructuring.
The wholesale and outsourcing business and retail businesses of Travelex abroad (Brazil, Middle East & Turkey, Nigeria and Asia Pacific) will form one part of the business.
Warehouse Travelex will be the other part and contain the UK, Europe and North American businesses.
Through the restructuring, Travelex will receive £84m of new liquidity via the issue of new senior loan notes alongside an 84% reduction of its existing financial debt, the group said in a statement.
Travelex’s current senior debt holders will also own the business and run it through an ad hoc committee.
Tony D'Souza, Travelex’s chief executive, said: “This agreement marks a significant and positive milestone in the strategic initiatives which the company has pursued over recent months.
“The restructuring will provide Travelex with a stable platform through £84mln of new liquidity and a substantial debt reduction, so that it can rebuild revenues under the stewardship of its new shareholders.”
Travelex was part of Finbalr PLC (LON:FIN), which has been suspended since March after it announced a US$100mln liability for cheques the group had been unaware of.
The coronavirus lockdown, meanwhile, has severely reduced the number of passengers using airports.