Jun 19, 2020
Travelodge landlords approve CVA
Travelodge's landlords have voted to approve the UK budget hotel operator's proposals to restructure its leases, drawing a line under acrimonious negotiations between the company and its creditors. Travelodge landlords signed off on proposals for a company voluntary arrangement on Friday afternoon, which will involve Travelodge temporarily reducing rents and moving from quarterly to monthly payments on certain leases. The CVA was voted through after Travelodge made significant concessions. Travelodge shareholders have also agreed not to take any money out of the company before it returns to paying full rents in 2021. Travelodge's adjusted earnings last year were £129m, on revenues of £693m. Viv Watts, who represents a group of Travelodge landlords, approved the proposals but said: "We remain concerned by the precedent this CVA sets for the wider real estate industry. It is clear that CVAs are being used by overseas shareholders to extract and repatriate domestic capital from the commercial property sector."
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