Travelzest given credit facility extension as concerns continue

Travelzest continues to negotiate with its banks over credit arrangements amid concerns over the future of the company.

Travelzest continues to negotiate with its banks over credit arrangements amid concerns over the future of the company.

The operator announced today that it had been granted an extension of its credit facility with its primary lending bank until Friday (July 12).

The credit agreement had been due to expire on June 30.

In a Stock Exchange statement this morning, Travelzest said: “As previously stated, the company has received waivers from its primary bank in respect of the requirement to comply with financial covenants since April 2012.

“Consequently, the company remains reliant on the support of its primary lending bank in order to continue to trade.”

Travelzest announced in January that it was seeking to re-negotiate the terms of its existing bank loans and facilities.

The board said it “was of the view that the terms were unsustainable and were negatively impacting the profitability of the company”.

This situation remains unchanged, Travelzest said.

Interim results for the six months ended April 30 are expected to be released in late July when a further update on the company’s trading and debt position will be given.