Troubled Travelzest has won a month’s breathing space with the change of its primary lending bank.
The travel group announced today that Barclays Bank has completed an assignment of the company's £15 million of debts, associated financial liabilities and security arrangements to Elleway Acquisitions Limited (EAL).
Travelzest said: “EAL, as the company's new primary lender, has confirmed its support of the proposed strategy of the business in the short term and has confirmed that it is its current intention to support the company by providing, on behalf of that consortium, a working capital facility for the period up to and including September 30, 2013 whereupon it will reassess the position of the company.
“This is notwithstanding the fact that the company must continue to comply with its obligations under the existing and new working capital facility arrangements and that the loans and facilities are still capable of being demanded by EAL at any time.
“Consequently, the company continues to be reliant on the support of EAL in order to continue to trade.”
Travelzest added that a further announcement will be made in due course.
EAL, a company incorporated in the British Virgin Islands, has taken on the on the Travelzest debts on behalf of a consortium led by Canada-based Logistics Development Corporation.
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