Hedge Funds to Take Control of Travelodge

The ownership of the debt-laden UK budget hotel group–Travelodge, is shifting from the hand of its Dubai backers into the grasp of GoldenTree Asset Management and Avenue Capital.
GoldenTree Asset Management and Avenue Capital are getting ready to underwrite a loan facility of £60m for Travelodge to replace one that is due to mature. The two US hedge funds are then expected to take control of Travelodge with a debt-for-equity swap. They are searching for partners in the new facility, such as RBS as well as Investec and Barclays, in a series of talks expected to last for the following two months.