21st Oct 2013 07:21
LONDON (Alliance News) - Online travel agency Travelzest PLC Monday said it has got another one-week extension to its working capital facility.
The company, which is completely reliant on bank funding to keep trading, has been given the extension by primary lender Elleway Acquisitions Ltd.
Travelzest is struggling with its debt pile. Previous primary lender Barclays had been extending its facilities, but was reassessing the situation regularly. Travelzest has wanted to renegotiate the terms of its loans and banking facilities since July because interest payments were hitting earnings. The company called the situation unsustainable, and is trying to find other sources of funding so it can refinance and make new investments.
Barclays passed the company's debts on to Elleway in September. Elleway has been giving the company weekly extensions since then.
Travelzest shares were up 8.7% at 1.25 pence early Monday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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