Debt ridden hotel chain Travelodge is having some difficulties with its creditors as they feel that the rescue plan is not as they would like.
The British Property Federation has called for a review of the company voluntary arrangement that has been put forward by the insolvency practitioners that have been engaged by the hotel firm.
At least 109 of the total hotels within the chain have been deemed as viable.
The Travelodge has around £1 billion worth of both secured and unsecured debts, however, they saw a 20% rise in profits last year creep towards £55 million. This shows promise in these challenging times for hotel chains so there could be promise for the Travelodge.
Talks are going on at the moment between KPMG, the insolvency practitioners who have been engaged by the Travelodge and the creditors to find some sort of middle ground for the company voluntary arrangement otherwise know as a CVA.
