MyTravel cleans up accounts
Embattled tour operator, MyTravel, has embarked on a number of accounting cleanups that will see its debts surge by £210m.
The initiatives, according to the Evening Standard, could also involve asset write-downs of more than £100m. It has decided to transfer the controversial minority interest preference shares (Mips) onto its overdraft.
Announced today the move is likely to please investors, after one analyst described the controversial financial instrument as a ticking bomb in MyTravel’s accounts’.
Chief executive, Peter McHugh, is locked in a compaign to shore-up the company’s finances. He has succeeded in extending the £1.15bn lending facility, in order to give the group more breathing space.