Dubai-owned Travelodge in a USD999.6 restructuring deal 

(MENAFN) Dubai-owned Travelodge agreed an USD999.6 million debt restructuring that will give lenders control of the business, Reuters reported.

Under the restructuring deal terms, debt will be reduced to USD516.87 million from USD997.61 million. Also, new cash totaling USD117.83 million will be injected into the business for major refurbishment work, the company said.

Travelodge has been hard hit from the economic downturn, coupled with a large debt burden and expensive lease arrangements.

The owner, Dubai International Capital (DIC), has already written down its investment in the budget hotel chain, and will deliver ownership to mezzanine lenders including GoldenTree Asset Management and Avenue Capital Group.

DIC bought Travelodge from private equity firm Permira in 2006 for USD1.1 billion, backed by loans of USD750.96 million.

The company's adviser KPMG said all existing hotels would remain open though 49 would be sold to other operators.