7th Oct 2013 07:55
LONDON (Alliance News) - Travelzest PLC, which is completely reliant on bank funding to keep trading, Monday said its primary lender has agreed to extend its on-demand working capital credit facility for another week, until October 14.
The extension is the second the online travel agent has been given by new 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 had wanted to renegotiate the terms of its loans and banking facilities back in 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.
It said Monday it would update the market in due course.
Its shares were up 15.4% at 1.645 pence early Monday, one of the biggest gains on the London market.
By Steve McGrath; [email protected]; @SteveMcGrath1
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