Troubled leisure giant MyTravel is expected to agree a deal with bondholders this month to enable it to conclude its refinancing package. The UK-based tour operator group, the parent of MyTravel Airways and MyTravelLite, also launched a long-expected compensation lawsuit against the European Commission over the handling of its blocked merger with First Choice in 1999.
MyTravel has been in active negotiations with holders of around £200 million ($333 million) of bonds set to mature next year since launching a refinancing plan at a shareholders' meeting in March. The bond issue had threatened to delay a £1.2 billion re-structuring set to start in September.
Separately, the group lodged a £518 million compensation suit with the European Court of Justice (ECJ) last week over damages caused by the EC's decision to block its merger two years ago with rival First Choice, parent of Air 2000. MyTravel says the claim relates to a combination of court costs, lost profits and lost potential efficiency gains of a merged concern.
The company is able to bring the case after the ECJ declared the EC's judgement "flawed" last year. The claim marks the first time a company has demanded damages relating to an EU merger case.
MyTravel says that "although there are no legal barriers" to a further acquisition bid, the company's finances will not support such an action.
Source: Flight International
