Corporate Travel Agencies Restructure to Gain Edge for Recovery

Image counts for everything in the current climate, as travel agencies look to reassure their customers they can handle their bookings as economies start to recover. And company travel managers will be seeking guarantees from them that they can cope with a surge in activity as travel restrictions lift, particularly as governments wind down their financial support packages and labor shortages threaten a wider industry recovery. The “time of truth” is approaching, according to one global travel buyer working in the retail sector. "It’s especially difficult to read how privately owned companies are doing. It’s up to them to provide the transparency," he said, preferring to withhold his name. Several large agencies now appear to be ramping up their messaging, and in some cases restructuring and refinancing. Credit Concerns? CWT is reportedly in restructuring talks, and looking to credit firms including Caspian Capital and Oaktree Capital Management for new financing. Bloomberg said CWT entered into the talks “after it skipped June 15 interest payments on its bonds ... the missed coupons started the clock on a 30-day grace period, and the company is using that time to try to reach a restructuring deal." Two days prior to the report, credit rating agency Fitch Ratings downgraded the company, due to the missed debt payments. “The company is engaged in discussions with a majority of its lenders and bondholders to negotiate an agreement for a more comprehensive transaction,” it said. A spokesperson for CWT told Skift a recovery in the global travel industry