The NTI newsroom reported on the challenges facing global UK-based currency-robbing company, Travelex what? a month or so ago? PwC have now reported on the state of their unsecured creditor book, and it is a little eye-watering. Travelex have suffered a shortfall of more than £368 million after a pre-pack Administration of the foreign exchange business. Ouch. Most of this is owed to bondholders who took control of the company in August, but when you factor in the biggies, such as HMRC (always a favourite), councils and, oh, airports the debt owed amounts to a much more respectable one billion Sterling (for which Travelex would give you about $250, in twenties and tens ...).
PwC have done their sums and they reckon that unsecured creditors stand to receive 0.6p to less than 0.1p in the pound for those Travelex entities that are able to salvage a dividend. Lets's see, I am London Gatwick Airport and I am owed £210,000 in unpaid rent; what can I expect to receive? Between £210 and £1,260. Hmm, I had better close a Terminal Building.
PwC have been up all night on this one. The Administration is understood to be one of the most complex insolvency transactions in recent years because of Travelex’s global operations, the regulation of various businesses and the new money that was raised to prevent Travelex’s collapse and greater losses to creditors. The media pack will be up-in-arms, of course, screaming that it is a 'Pre-Pack Fix', giving little room in their reports to the saving of jobs, a business and a brand that now has a future. IPs will be pilloried and our glorious profession besmirched. But we would still give a better exchange rate than £1 = 75 cents.