MyTravel rebels stick to guns

THE dust-up between MyTravel and its bondholders looks destined to end up in court.

The parties failed to broker a compromise deal that would allow the heavily-indebted tour operator to wipe out £800m liabilities.

MyTravel had imposed a deadline of 5pm yesterday for the rebels to accept its terms, but only a handful actually did.

Those that did not accept now face the prospect of receiving a much smaller slice of the restructured MyTravel than they were originally offered in the debt-for-equity swap.

The holiday firm has warned that if it does not force through its financial restructuring soon it may have its licence revoked by the Civil Aviation Authority.

The ultimatum issued by MyTravel states that holders of £216m of convertible bonds could get as little as 2% of the company after failing to comply. They were originally offered 8%. Existing shareholders will get 4% and the banks will take the remainder.

Four unnamed institutions and 20 individual investors have formed a bondholders' committee against the plan.