XL Leisure ‘in urgent talks with banks’
31.08.08
Britain’s third-largest holiday company, XL Leisure Group, is in urgent talks with its banks after plans for a refinancing hit delays, the Times reports. The group’s lenders, Barclays and the Icelandic group Straumur, are said to be 'considering their options this weekend'.
The company is reported to be looking for a new lender after Barclays pulled financing associated with fuel-hedging positions on August 14. The newspaper quotes 'airline-industry sources' saying that Barclays had recruited Kroll, the corporate-restructuring specialist, as an advisor, adding that the future of the group could be decided this week.
XL, which underwent a management buyout in 2006, has grown quickly to become a big force in the UK holiday market behind TUI Travel and Thomas Cook. XL Airways, its airline, flies to more than 50 destinations. The group sells holidays under a diverse range of brands including Kosmar, XL.com, Freedom Flights and Travel City Direct.
An XL spokesman confirmed to the newspaper that ‘third parties’ had been engaged as part of its planned refinancing. He said: ‘We have no further comment on the specifics of the refinancing. While acknowledging it is a challenging market, the XL Leisure Group is experiencing strong trading, with bookings for 2009 already outperforming last year.’
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