The embattled company will be split into two separate platforms, Travelex said in an update
Embattled payments and foreign exchange platform Travelex will be split into two separate companies as a result of a restructuring that will see its debt holders take control of the company, according to an update posted to the London Stock Exchange.
As part of the deal, Travelex lenders will take complete control of the business in return for a debt restructuring and a cash injection of $105.3m.
The update added that the UK-based firm – which was owned by BR Shetty’s Finablr – will also see debt reduced by 84 percent as €360m ($451.9m) worth of senior secured notes (SSN) converted into equity.
The company will be split into an Initial FundCo – which will focus on wholesale foreign exchange markets – and an Optional FundCo which will be centres on retail markets in Europe and the UK.
“The restructuring will provide Travelex with a stable platform through £84m of new liquidity and a substantial debt reduction, so that it can rebuild revenues under the stewardship of its new shareholders," said Travelex CEO Tony D’Souza.
“I want to thank again all of Travelex's employees who have continued to work tirelessly through this challenging period,” he added. “I am also grateful to our secured lenders and all of our stakeholders for their continued support as we reach this milestone and look forward to the successful completion of the transaction."
In late April, Finablr said it may owe at much as $1.3 billion.