In a bid to save 10,000 jobs and “secure the long term future of the business”, Travelodge will reportedly launch a formal restructuring plan that will see its shareholders inject £40m into the group as part of a new CVA proposal.
The CVA, overseen by Deloitte, is aimd to “win over” sceptical landlords and restore confidence in the hotel group.
According to information from Sky News, the CVA would result in no site closures and all 564 sites would revert to their full rent agreements from the end of next year.
Landlords are now being asked to forego £144m of the total £4bn in rent due and a previous proposal to secure £60m in borrowing capacity has now been increased to £100m.
Landlords have claimed the budget hotel operator was “taking advantage” of the coronavirus crisis.