Travel management firm CWT has entered and exited Chapter 11 bankruptcy in record time.
A US court judge approved the TMC’s plan to exit only a day after filing for Chapter 11.
It was a pre-packaged Chapter 11 filing with creditors’ approval already secured.
“We are pleased to have received prompt court approval of the agreement we reached with CWT’s financial stakeholders, which positions the company for long-term success,” said CWT CEO Michelle McKinney Frymire.
The CWT pre-arranged restructuring sees itsexisting $1.5 billion debt reduce by about half and would raise an additional $350 million in new equity.
It also announced $100 million in product development.
“Having reached this important milestone, we are now able to move beyond the pandemic and accelerate investments that create innovative programs including an enhanced myCWT platform,” McKinney Frymire said.
The reorganisation sees the Carlson family relinquish control of the business.
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