 MyTravel hopes disposals will take the heat out of its heavy debts |
Package holiday firm MyTravel has taken another step in its recovery drive with the sale of its loss-making German business and smaller Polish operations. The debt-laden UK group said it had disposed of its Frosch Touristik unit to a privately owned German company.
The firm said that it had also sold its two Polish tour operations, Ving and Itaka, to a consortium including members of the management team.
The disposals would result in one-off losses of �86m ($143m), MyTravel said.
Survival hopes
Frosch Touristik, which also operates in Austria and Switzerland, made an operating loss of �31.2m in the year to September 20.
MyTravel said the German firm was unlikely to make a "positive contribution" to its turnaround.
The sell-offs are the latest in a string of asset disposals aimed at reducing the firm's net debts, which stood at �628.5m by the end of March this year.
In July, MyTravel - formally known as Airtours - agreed to sell its Florida timeshare resort for up to �15.1m.
And last month the group secured some breathing space in its battle for survival after securing new terms on �221.6m of debt.
MyTravel - which is based in Rochdale, Greater Manchester - said the agreement would give it more time to implement restructuring at an operating level.
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