Stake scheme for MyTravel execs

UP TO 50 executives at MyTravel are to be given a 5.6% stake in the troubled tour operator, but only if its controversial £1.3bn debt restructuring goes through.

The former Airtours group, struggling to persuade its bondholders to support the scheme, warned today it could lose its licence from the Civil Aviation Authority - forcing it to cease trading - unless the restructuring goes ahead.

It also repeated its threat to take the case to court if bondholders do not pledge their support by Wednesday.

It needs backing from holders of 75% of the bonds and said it has already won over a 'significant majority'.

The restructuring will give bondholders 8% of the company, but that will fall to 2% if the matter goes to court. Shareholders will be left with 4%, while the banks get 88%.

A share option scheme that could give management a 5.6% stake will have to be approved by shareholders and will be linked to performance targets based on increasing the market capitalisation of the company.

MyTravel said it was designed to retain and incentivise senior staff.

Shares in the group fell 0.54p to 3.56p, valuing it at less than £20m.