Background

FRP was engaged by the financial advisors of a €1.5 billion debt European-based travel operator to assist with its recapitalisation amongst its existing lenders as part of a wider transaction. The Group had been significantly impacted by the Covid-19 pandemic but benefited from a strong management team and asset base as well as global brand recognition.

Action

FRP’s Restructuring Advisory and Financial Advisory teams assessed the implications for the business and its lenders if the recapitalisation could not be achieved consensually. FRP provided valuations of the Group and its key components, before and after the recapitalisation and produced an entity priority model to estimate the recoveries to lenders under each scenario. The work was completed to a tight timetable.

Outcome

FRP’s work successfully demonstrated the benefits of the consensual recapitalisation against a detailed analysis of the likely alternatives should a consensual outcome not be achieved, allowing the Group to agree to a solvent restructure of its debt. This has enabled the business to continue trading solvently and positioned it well for future growth.