XL financing deal ‘this week’
02.09.08
XL Leisure, the UK's third-biggest tour operator, is hoping to shore up its finances this week after talks with lenders. The group, which runs XL Airways and sells holidays under brands including Travel City Direct and Freedom Flights, has been in talks with Barclays and Icelandic investment group Straumur, the Daily Telegraph said.
The Gatwick-based group has been hit by rising oil costs and is trying to refinance its debt. Barclays - a minor lender to the group - is said to have withdrawn financing associated with XL's fuel hedging positions last month, although the company is said to be confident of resolving the situation this week.
XL's management led a buyout from the previous owner - Iceland's Avion Group - in 2006. The group said it was working on a refinancing as part of ‘a wide ranging change programme’ but refused to comment on the specifics of the process. Restructuring specialist Kroll is said to have been appointed as an adviser to the group, or by Barclays, but it declined to comment.
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