Elliott’s Travelport Offers to Undo Disputed Deal. For a Price

(Bloomberg) -- Travelport, controlled by Elliott Management Corp. and Siris Capital Group, is offering to unwind a controversial asset move, but only if lenders agree to take a hit.

The owners of the global bookings operator told lenders over the weekend they could undo a move that shifted valuable intellectual property away from creditors’ reach if they are willing to compromise on a debt exchange, according to people with knowledge of the matter.

The investment firms are asking creditors including GSO Capital Partners LP for roughly $500 million in new money and to roll-up some of their existing debt at a steep discount. Travelport is offering to do that exchange at a price that would be a little higher than the current trading level of roughly 58 cents on the dollar on the company’s $2.8 billion first-lien loan, the people said.

Tensions between owners and creditors have escalated since Travelport transfered the valuable assets into an unrestricted subsidiary. A group of lenders led by GSO had already sent the company a notice of default last week and could still choose to make an accelerated debt repayment request, people familiar with the matter have said.

Representatives for Elliott and Siris declined to comment.

Elliott and Siris, which acquired Travelport last year, have maintained the transfer complies with the existing credit pact. The company is facing the brunt of the virus-fueled global shutdowns that have left it in a difficult situation and in need of a fresh cash injection.

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