3rd Jun 2020 14:44
(Alliance News) - Secure Income REIT PLC on Wednesday said it has received no communication from tenant Travelodge over its plans to pursue a company voluntary agreement.
The statement from real estate investment trust comes as budget hotel Travelodge said it has started a restructuring plan, which it hopes will secure the future of its 10,000 staff and 584 hotels.
The company confirmed on Wednesday it is filing a company voluntary arrangement deal with the aim of securing GBP144 million worth of rent cuts. A CVA is an insolvency arrangement used to reduce rent bills.
Secure Income said on Wednesday: "Travelodge has yet to provide details of their proposal to the company and we await sight of any CVA documentation.
"Once received, we will be scrutinising any proposals along with our team of expert advisors in order to best protect the company's position in determining whether or not to support any CVA proposals."
Travelodge closed all of its hotels in the UK back in March due to the government lockdown.
And in April, Secure Income said it has been in discussions with Travelodge for weeks in an attempt to recover the rent it is owed, but had not yet received a proposal to settle the amount due.
Secure Income shares were 0.4% lower at 270.00 pence each in London on Wednesday afternoon.
By Eric Cunha; [email protected]
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